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Farmers State Bank
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Is a HELOC Right for You? What to Know Before You Borrow

A Home Equity Line of Credit (HELOC) can be a flexible, cost-effective way to access funds when you need them. However, like any financial tool, it’s essential to determine if it’s the right fit for your goals. At FreedomBank, our local lenders take the time to walk through the process and help you make an informed decision.

Kelli Mudderman

Kaylee Fritz
Vice President
FreedomBank Postville
NMLS# 1071176

Barb Shull

Chelsie Sperfslage
Vice President
FreedomBank Elkader
NMLS# 907677

Who is a Good Candidate for a HELOC?

“Homeowners who have equity in their home along with good credit are typically good candidates for HELOCs,” explains Kaylee Fritz, FreedomBank Vice President in Postville. “It’s also important to remember that are using your home as collateral, so you should carefully evaluate if that’s the right choice for you.”

What Does the Process Look Like?

At FreedomBank, we make the process as straightforward as possible. Cheslie Sperfslage, FreedomBank Vice President in Elkader, shares,
“We will provide you with an application to complete, whether it be by email, phone, or in person. Once we receive the completed application, we guide you step by step from start to finish.”

When Might Another Loan Be a Better Fit?

While HELOCs are flexible, there are situations where another loan might make more sense. Kaylee notes,
“If a customer prefers to receive their loan funds in a lump sum at closing and they prefer to have a regular repayment schedule that features equal payments, then a closed-end home equity loan may be a better fit than a HELOC.”

How Can You Use a HELOC Wisely?

Both lenders stress the importance of managing a HELOC responsibly.

Cheslie advises,

“With a HELOC, keep a close eye on the amount you borrow from month to month, and work to pay additional on the required payment so you can rebuild equity more quickly.”
Kaylee adds,
“With any open credit line, monitor the amount of credit and always pay more than the required minimum payment when possible.”

Ready to Learn More?

A HELOC can be a helpful financial tool if used wisely. Whether you’re considering home improvements, consolidating debt, or planning for future expenses, FreedomBank lenders are here to guide you every step of the way.

Learn more about HELOCs here and connect with a FreedomBank lender to see if this option is right for you.


Member FDIC. Equal Housing Lender. All loans are subject to credit approval.

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