Home Equity Options: Tapping Into Your Property's Value Responsibly in Today's Economy
Are you feeling the financial squeeze from rising prices at the grocery store and beyond? You're not alone. Many Wausau families are looking for smart financial solutions in today's challenging economic landscape. If you own a home, you might be sitting on a valuable resource that could help ease some of those pressures.
Understanding Your Home's Hidden Potential
Your home is more than just the place where you live—it's likely one of your most significant assets. As you pay down your mortgage and as property values increase, you build equity. This equity represents real value that you can access when needed.
In Central Wisconsin, we've seen steady home value appreciation over the past few years, even as the national housing market has experienced fluctuations. This means many local homeowners have built substantial equity they might not even realize they have.
Today's Economic Challenges
Before exploring how to use your home equity, let's acknowledge the economic realities we're all facing:
Rising inflation impacting everyday expenses from groceries to utilities
Supply chain disruptions and tariffs affecting prices on consumer goods
Agricultural challenges like bird flu driving up egg prices and other food costs
Increased interest rates affecting borrowing costs across the board
These factors have created a perfect storm for household budgets, making it more important than ever to consider all available financial resources—including home equity.
Home Equity Options That Make Sense
Home Equity Loans: The Lump Sum Approach
A home equity loan provides a one-time lump sum with a fixed interest rate and consistent monthly payments. This option works well when you:
Need a specific amount for a major expense
Prefer predictable payments
Want to lock in today's rates before potential increases
For example, many Wausau homeowners use home equity loans to fund much-needed home improvements that increase their property's value or energy efficiency—helping to offset rising utility costs.
Home Equity Lines of Credit (HELOCs): Flexible Borrowing
A HELOC functions more like a credit card, allowing you to borrow what you need when you need it, up to your approved limit. Consider a HELOC when you:
Have ongoing expenses or projects
Need flexibility in borrowing amounts
Want to pay interest only on what you actually use
While Public Service Credit Union does not currently offer HELOCs, many credit unions in the Wausau area do provide this option. We're happy to discuss whether this product might be right for your situation and refer you to trusted local financial partners who offer these products.
“As you pay down your mortgage and as property values increase, you build equity. This equity represents real value that you can access when needed.”
Using Home Equity Responsibly
While home equity can provide financial relief, it's crucial to approach these options with care:
Avoid using home equity for everyday expenses unless absolutely necessary
Consider the long-term impact on your overall financial picture
Remember your home secures the loan, meaning responsible repayment is essential
Smart Uses for Home Equity in Today's Economy
Home Improvements with ROI
Investing in energy-efficient upgrades can help combat rising utility costs. Wisconsin winters aren't getting any warmer, and improved insulation, energy-efficient windows, or updated HVAC systems can lead to significant long-term savings.
Debt Consolidation
With interest rates climbing, consolidating higher-interest debts using home equity could potentially save you money. The average credit card interest rate now exceeds 20%, while home equity options typically offer significantly lower rates.
Creating Financial Buffers
In uncertain economic times, having access to funds for emergencies provides peace of mind. A HELOC can serve as a backup plan without costing you anything until you actually need to use it.
Local Considerations for Wausau Homeowners
Central Wisconsin's housing market has its own unique characteristics. While we haven't seen the dramatic swings experienced in larger metropolitan areas, local property values have remained stable and even increased in many neighborhoods. In fact, Marathon County has experienced the highest property value growth in Wisconsin over the past year, making this an especially opportune time for local homeowners to consider their equity options.
This stability makes home equity a particularly valuable resource for our members. The key is working with a financial partner who understands both the local market and your personal financial situation.
Next Steps: Exploring Your Options
If you're considering tapping into your home's equity, we recommend:
Scheduling a personal consultation with our lending team
Getting a current home value assessment
Reviewing your overall financial goals and how home equity fits into your strategy
Understanding all costs associated with different equity options
At Public Service Credit Union, we're committed to helping you navigate these decisions with confidence. Our team understands the unique financial challenges facing utility workers and their families in today's economy.
Ready to explore how your home's equity might help you weather today's economic challenges? Contact Bonnie Grayson, our Vice President of Lending, at bgrayson@publicservicecu.org or 715-768-6560 (NMLS #2317471) to schedule a personalized consultation.
This article is for informational purposes only and should not be construed as financial advice. Home equity products involve using your home as collateral, and failure to repay as agreed could result in foreclosure. Please consult with our lending professionals to determine the best option for your specific situation.