Millions of homeowners are now discovering the good news: they have equity in their homes again.

According to June DataQuick numbers, home values in Los Angeles County were up an average of 28%. However, if you’ve already refinanced for a low home loan rate you may not want to refinance to access your equity. Instead you might consider opening a home equity loan or a home equity line of credit (HELOC).

If you have home improvements in mind but are not sure of the costs, a HELOC may be the answer. With a home equity line of credit, you are assigned a maximum amount you can borrow, also known as your home equity credit line. Unlike the home equity loan where you borrow a lump sum amount, with a HELOC you borrow just what you need when you need it, and pay interest only on the borrowed amount.

It’s important to compare loans and lenders, as all are not created equal. Closing costs on most loans secured by real estate may amount to hundreds of dollars. Lenders may waive some – if not all – of the fees. To find out if your home equity loan or HELOC is tax deductible, be sure to read the IRS Publication number 936 as well as consult your tax advisor to see if your loan will qualify.

With some research, you’ll find the perfect home equity loan that meets your needs.

Water and Power Community Credit Union (WPCCU) is a full service financial institution that provides checking, savings, auto and home loans to the employees of Los Angeles Department of Water and Power (LADWP), as well as the businesses and residents located in communities serviced by the LADWP. Learn more about becoming a member of WPCCU at wpcu.org, or by calling (800) 300-9728, and asking for the real estate department.