Say Hello to a HELOC
A Home Equity Line of Credit (HELOC) could be your funding solution.
When big expenses pop up - like college tuition, home improvements, or unexpected costs - it can be tempting to reach for a credit card. But before you swipe, consider a Home Equity Line of Credit (HELOC).
A HELOC can be a flexible, cost-effective way to access funds when you need them, without getting stuck with high credit card rates.
Why open a HELOC?
A HELOC lets you borrow against the equity you’ve built in your home, setting a credit limit you can draw from over time - similar to a credit card, but with a much lower interest rate. You can borrow as little or as much as you need, when you need it, during a 10-year draw period. After that, you’ll have another 10 years to repay what you’ve used.
One of the biggest advantages of a HELOC is that you only pay interest on what you use. So, for example, if you’re approved for $50,000 but only draw $10,000 for a kitchen renovation, you’ll only pay interest on that $10,000. Plus, you can reuse your line as needed, without having to reapply each time you want to access funds.
When should I use HELOC funds?
A HELOC is especially helpful for long-term or uncertain expenses, like covering years of college tuition, making ongoing home repairs, or tackling a remodel in stages. Instead of juggling multiple credit cards or loans, your HELOC keeps everything in one place with a competitive variable rate that helps you save money over time.
If you’re looking for a smart, flexible way to open up funding without piling on high-interest debt, a HELOC could be your best move.
