St. Louis, MO (October 29, 2025) With declining interest rates and household budgets tightening, First Mid Bank & Trust (First Mid) is encouraging homeowners to take a closer look at the advantages of home equity loans and lines of credit and the various ways those funding streams can be used. Whether planning a home renovation, paying college tuition, consolidating debt, or preparing for emergency expenses, these options offer flexible, cost-effective solutions that meet a wide variety of financial needs.
“With the Federal Reserve’s recent rate cut and expectations for continued decreases, homeowners have a unique opportunity to strategically tap into their home’s value,” said Mathew Reynolds, Director of Consumer Loans and Credit Cards at First Mid. “A HELOC can be both a safety net and a smart financial tool, providing flexibility, peace of mind, and access to lower-cost funding.”
A home equity loan provides a one-time lump sum repaid in fixed monthly installments, making it ideal for large, single expenses such as debt consolidation or a vacation property purchase. A home equity line of credit (HELOC) works like a credit card, offering a revolving line of credit with a variable interest rate that you can draw from as needed, paying interest only on the amount borrowed. As it’s repaid, the available credit is replenished, which is ideal for ongoing or flexible expenses.
“My own family established a HELOC years ago as a kind of safety net,” said Reynolds. “Over the years, it has become an incredibly useful tool that has led to significant cost savings. You can borrow, repay, and immediately borrow again, so it provided us with the flexibility to take on home improvement projects as our needs evolved, without paying interest on a large credit amount. We were able to finish our basement in stages, install a pool and deck in our backyard, and are now planning landscaping upgrades for the near future, all while only paying interest on what we used.”
Often, the variety of ways HELOCs can be used are underestimated. Beyond home improvements, customers can leverage them for medical bills, tuition, and major purchases, such as a boat or car, to avoid higher-interest boat or auto loans. Because HELOC rates are typically lower than those of credit cards or personal loans, many people save significantly over time.
Apply for a First Mid home equity loan or HELOC online, by phone, or at any branch location. Most HELOC applications are completed within two to three weeks, depending on documentation and appraisal requirements. To learn more, visit www.firstmid.com/mortgages/home-equity/.
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About First Mid Bancshares, Inc.: First Mid Bancshares, Inc. is the parent company of First Mid Bank & Trust, N.A., First Mid Insurance Group, and First Mid Wealth Management Company. First Mid is a $7.7 billion community-focused organization that provides financial services including banking, insurance, wealth management, brokerage, and ag services through a network of locations in Illinois, Missouri, Texas, and Wisconsin, and a loan production office in Indiana. Together, our First Mid team takes great pride in providing solutions and services to our customers and communities and has done so since 1865. This year, we proudly celebrate our 160th anniversary, marking a long history of dedication and service. More information about the Company is available on our website at www.firstmid.com. Our stock is traded in The NASDAQ Stock Market LLC under the ticker symbol “FMBH”. Member FDIC | Equal Housing Lender.
Investments and Insurance Products: Not a Deposit | Not Guaranteed by the Bank or its Affiliates | Not FDIC Insured | Not Insured by Any Federal Government Agency | May Go Down in Value.