“Let your house work for you!” This is a saying heard often by homeowners across the U.S. While you may have heard it, you still might not know exactly what it means. The saying refers to a Home Equity Line of Credit.
To start, a Home Equity Line of Credit (HELOC) is a bank loan based on the equity in one’s home. Since our homes are typically our most valuable asset, it is used as collateral for the loan. You may be wondering, “With the burden of a mortgage, who really needs another loan?” The short answer: A HELOC is different from a loan because it is easily accessible cash that has been pre-determined by your equity and credit worthiness. However, unlike a loan, a HELOC works similarly to a credit card, so you only pay interest on what you use. Additionally, interest rates tend to be lower on a HELOC than they are on a credit card or fixed loan.*
What can you use a HELOC for?
- Home Repairs: Did your roof get damaged in that wind storm we had a few weeks ago?
- Home Remodels: Have you always hated the master bathroom or kitchen? Change it!
- Vacation: Have you been dreaming of a safari trip? Take it.
- Medical Expenses: Accidents and life happen.
- College Education: Are you deciding to go back to school or are you preparing for your child to attend?
- Car: Ditch the “junker” in the driveway!
- Credit Card Debt: Pay down your credit cards.
- Emergency Funds: Life happens. Will you be prepared?
The possibilities are endless. Have fun with your Home Equity today and let your house work for you!
*All loans are subject to credit approval. Variable Annual Percentage Rates are based on Wall Street Journal Prime Rate and is adjusted daily.