FAQs

Yes. A Michigan First personal loan or home equity line of credit may allow you to combine multiple eligible debts into one monthly payment. The best option depends on the types of debt you have, the amount you need to borrow, available home equity, and the rates and terms for which you qualify. Compare the total borrowing cost carefully, because consolidating debt does not eliminate it and using home equity can place your home at risk.

Michigan First offers home equity lines of credit with financing up to 100% of your home’s value, minus the balance of your mortgage and any other loans secured by the property. For example, if your home is worth $250,000 and you owe $200,000, you may be eligible to borrow up to $50,000. The amount you qualify for will also depend on factors such as your credit, income, existing debts, and ability to repay.

Home equity financing can be used for many significant expenses, including home improvements, major repairs, education costs, large purchases, and debt consolidation. Because your home serves as collateral, consider the costs and repayment terms carefully before borrowing.

A home equity loan generally provides a one-time lump sum that is repaid through regular payments, usually at a fixed interest rate. A home equity line of credit, or HELOC, allows you to borrow from an approved credit limit as needed and pay interest only on the amount you use. HELOCs commonly have variable interest rates.