How a HELOC Can Help
Home equity lines of credit (HELOCs) are a low-cost way to finance major expenses. Here are some ways you can take advantage of a HELOC for your financial or personal well-being. To use your existing HELOC, simply log into digital banking and transfer money from your HELOC to your checking account.
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 got the debt in the first place, a HELOC can help you pay it down faster by lowering your payments. Interest rates on HELOCs can be very low, which allows you to put more of your money toward the principal amount owed. It also gives you peace of mind knowing you’re paying down your debt with just one low-interest loan payment each month.
Whether you’re returning to college or sending your child to school, the flexibility of a HELOC can 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.
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.