Home Equity Lines of Credit are a low-cost way to finance major expenses. Here are some ways to harness a HELOC for your financial or personal well-being.
DEBT CONSOLIDATION: Maybe it’s medical bills from a major illness or injury, credit card debt you incurred during a difficult time, or a high interest loan you took out to finance a big purchase. No matter how you incurred the debt in the first place, a HELOC can help you pay it down faster by lowering your payments. Interest rates on home equity loans can be very low, which allows you to put more of your money toward the principal amount owed. It also allows you peace of mind knowing you’re paying down your debt with just one low interest loan payment each month.
COLLEGE TUITION: Whether you’re returning to college or sending your son or daughter to school, the flexibility of a HELOCcan help you cover tuition payments at the beginning of each semester and pay down the balance throughout the school year. Interest rates on HELOCs can be lower than many other student loan options.
HOME REPAIRS/REMODELS: Before you charge your big repair bill to a high interest credit card, see how much a HELOC can help you save. Why not leverage the equity in your home to get a low-interest loan for repairs and remodels? You can even check with your accountant to see if interest paid on a HELOC for home repairs and remodels can be counted as a tax deduction.