In 2025, home equity loans are more popular than ever — and it’s easy to see why. Many homeowners locked in historically low mortgage rates during the 2020-2023 mortgage refinance boom. And since then, home values across the Finger Lakes Region (and nationwide) have continued to rise, creating significant home equity – and exciting possibilities.
At Finger Lakes Federal Credit Union, we are here to help show you how homeowners, just like you, are putting home equity loans to good use — without disturbing that low-rate first mortgage.
What is a Home Equity Loan?
A home equity loan allows you to borrow money based on the equity you have built in your home. Home equity is the difference between what your home is worth and what you still owe on your home loan(s). The home equity loan is issued as a lump sum proceeds with a fixed interest rate feature that offers predictable monthly payments.
Since your home is used as collateral, these loans often come with much lower interest rates than personal loans or credit cards. Borrowers can typically access up to 85% of their home's value minus any home loan balance, depending on creditworthiness and income.
It’s a great option if:
You need all the funds upfront.
You prefer fixed monthly payments and lower relative fixed interest rates.
You need to borrow for a significant expense but want to avoid touching savings or retirement funds.
Top Home Equity Loan Trends:
1. Home Improvements & Repairs
The most common and practical use of home equity loans today is to fund home improvements. In this housing market. more homeowners are deciding to stay in their homes longer and making new home improvements over upgrading or building a new home. Whether you're updating a kitchen, adding a bathroom, adding a patio hardscape, replacing a furnace, or replacing a roof, many home upgrade projects can increase your property’s value and can improve your quality of life.
2. Debt Consolidation
The second most common use of home equity loans we see in 2024 and 2025 is paying off high-interest rate credit card balances. Surveys indicate that the national average for US consumer credit card rates is over 20% interest! Many consumers are rolling their credit card balances into one low, fixed-rate interest monthly payment and saving significant money in the process. We have seen our members significantly simplify their finances, save money, and in many cases improve their credit score in the process.
3. Education Expenses
Parents are turning to home equity loans to help fund the cost of their children’s education or pay off student loan balances. From college tuition to career training, a home equity loan can potentially offer more favorable terms over many student loan options.
4. Supporting Family
Need to help a loved one with a down payment, legal fees, or emergency expenses? Your home equity could provide a financial lifeline.
5. Investing Opportunities
Have a solid investment opportunity, like real estate or stocks? A home equity loan gives you access to capital that could help grow your wealth.
6. Starting a Business
Got a business idea but need capital to get started? Many small business owners turn to home equity loans as a cost-effective way to fund their startups in the early years.
7. Dream Vacations
Life is all about experiences. If you’ve always dreamed of that big family trip or a bucket-list destination, using your equity responsibly can make that epic dream vacation into a reality.
8. Wedding Expenses
With rising wedding costs, couples and parents are turning to home equity loans to fund that big day without draining savings or long-term investments.
9. Medical Expenses
Unexpected health issues can be costly. A home equity loan can help cover procedures, treatments, rehabilitation and recovery costs, or medical care not covered by insurance.
10. Buying Land to Build a Home in the Future
With this tight housing market, we are also seeing an uptick in members buying land with the intention of building a home in the future.
Why Choose Finger Lakes Federal Credit Union?
At Finger Lakes FCU, we make the home equity loan process simple, secure, and personalized. Whether you’re ready to apply or just exploring your options, our local team is here to help every step of the way.
Here is what you can expect:
Borrow up to 85% of your home’s current market value less any existing home loan debt
Competitive, fixed interest rates
No closing costs no matter how large the loan is
Repayment terms up to 20 years
Fast and local decision-making
Expert guidance by highly professional and experienced loan officers in every office that will be tailored to your unique financial goals
- Closings occur between 20 to 40 days
- Newsweek selected Finger Lakes FCU as one of the Best 500 Regional Credit Unions in the United States in 2025
How to Get Started
Not sure how much equity you have in your home or if a home equity loan is right for you? Would you like to ask a loan officer about the differences between a home equity loan versus a home equity line of credit? These are all great questions, and we are here to help!
You can stop in any office, call, or contact us today to speak with one of our knowledgeable team members. You can also apply online in just a few minutes. Your home’s equity is a powerful financial resource. When you are ready to put it to work for you, we can show you how.