Did you know you may be able to use the equity in your home to help cover the costs of home renovations and repairs?
As a homeowner, you may have equity in your home that would allow you to secure a Home Equity Line of Credit (HELOC).1 A HELOC is a revolving line of credit secured by your home, allowing you to access the available equity you have in your home. The amount you borrow is based on a number of factors including the difference between the debt secured by your home and its market value.
With an equity line, you can borrow as much or as little as you need, whenever you need it, up to a credit limit established at closing. As you repay your outstanding principal balance, the amount of available credit is replenished, which means you can borrow against it again, if needed.
With a HELOC, you also have easy access to your account through convenience checks, and automatic payments can be deducted from your checking account.
- Convenience. The application and approval processes are fast and simple.
- Lower interest rates. Because HELOCs are secured by the equity in your home, the rates may be lower than other types of loans or credit cards. This may allow you to decrease your monthly payments and save money on the interest you pay.
- The interest you pay on a HELOC may be tax deductible2, while credit card and auto loan payments are not. Please consult your tax advisor about the deductibility of interest.