What Can Your HELOC Do For You?
8/5/2022
Are you wondering how you can make the equity in your home work for you and your family?
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What Can Your HELOC Do For You?
A Home Equity Line of Credit (HELOC) can help turn your goals into reality. A HELOC can be a great way to finance major expenses as it allows you to maximize cash flow when you need it most. Interest rates on HELOCs are typically lower than other credit alternatives and offer flexible repayment terms. Here are five things you can do with a HELOC.
Pay Off High-Interest Debt
If you have high-interest debt, like student loans and credit cards, consider consolidating with a HELOC to save money and simplify your money management.Prepare for Unexpected Expenses
While an emergency fund is certainly not a “fun” investment, a trip to the ER or a leaky roof can be a financial disaster if you’re not prepared. A HELOC can help bring you peace of mind.Renovate Your Home
Use your home’s equity to generate a greater return on your investment (ROI). Update your bathroom or create your dream outdoor entertainment space to increase the resale value of your home.
Fund Major Life Events
Credit cards and personal loans each have scenarios when they are the right solution for the job, but the flexibility and low interest rates HELOCs offer borrowers make them a great option for financing weddings.How Do I Determine My Home Equity?
To estimate how much equity you currently have in your home, use our home equity calculator. If you would prefer to calculate your home’s equity manually, just subtract the amount you owe on all loans secured by your home (mortgage balance, home equity loans or lines of credit) from it’s appraised market value.It’s important to remember when taking out a home equity line of credit or home equity loan, the collateral is your home. Make sure to budget well and not overextend yourself putting your home at risk. It’s wise to use a home equity line of credit or loan for long-term investments and major expenses rather than every-day spending.
For more information on home equity: what it is and how it works, check out Understanding Home Equity or come in and speak to a banker today.
