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[MUSIC PLAYING]
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From behind, a man sits at a desk against a white background. Another desk is nearby. A woman enters carrying a whiteboard on a stand. The board has various images of the interior of a house and swatches. She places a swatch at different places on the board.
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AMBER: Kitchen tiles, paint samples.
BRYAN: Morning, Amber. Setting up an artist's booth?
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She faces front with her hands on her hips. She wears a sash that says Captain Equity.
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AMBER: This is a credit union, Bryan. And, no, I'm finally getting rid of that '70s tiling I always hated and expanding my kitchen. You know what that means.
BRYAN: I'm still not a homeowner, remember?
AMBER: It's equity loan time, baby. I'm
(DESCRIPTION)
She holds her bent arms out. Logos, Navy Federal Credit Union. Making Cents.
(SPEECH)
going to teach you three ways to tap into your home's hidden value.
BRYAN: OK, Amber, I know you're Navy Federal Credit Union's homeowning hero, and you've got crazy equity. But how can you do anything with it? I thought equity was trapped inside your mortgage?
AMBER: Yep. You need special keys to unlock that equity-- a home equity loan, a home equity line of credit, or a cash-out refinance. Luckily, I've got stellar credit and an excellent payment history. But which one to choose? Let's look at their similarities first. Each offers a way to access your home's equity. And you'll have to apply for them, meaning your total financial health will be assessed again. Finally, all three are secured by your home, just like your mortgage. So definitely make those payments on time.
BRYAN: Totally with you. But I bet their differences are wild, though.
AMBER: Not necessarily. Check it out. With a home equity loan, your lender decides how much of your equity you can use. At Navy Federal, that's up to 100%. You get that money in a lump sum payment and pay it back at a fixed rate over a set period. Plus, we cover all your closing costs. Just think of the savings.
Now, a home equity line of credit, or HELOC, is like what your credit card offers. You don't get a big payment upfront, but you can borrow money as needed up to a limit. And you only repay what you borrow. And a cash-out refinance is a new mortgage that replaces your old one, but for more than you owe on the home. You get that extra money as a lump sum payment and repay it by making your new mortgage payments. No additional monthly loan payments, like with home equity loans or HELOCs.
BRYAN: It seems like there's a ton of possibilities when you tap into your equity.
AMBER: You're not kidding. Here are the most common ways people use their equity-- debt consolidation, home improvements, college tuition, weddings or other life events, medical bills, emergencies, or unexpected expenses. And here's a smart money strategy for you. Use your equity to improve your digs, because depending on the type, you can increase the value of your home and get sweet, sweet tax deductions on loan interest. Seriously, the IRS said so.
BRYAN: Hence the massive bag of home improvement gear.
AMBER: You know it. Captain Equity is always trying to maximize tax benefits. Don't forget, though. Always consult with a tax advisor about specifics. Now, I hope you understand equity loans. You help me enter my HGTV era.
BRYAN: Fine. But this, you'll lose equity if you go with this.
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He holds up a tan rectangle.
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BRYAN: They grow up so fast.
