5 Different Ways To Use Your Home Equity Line Of Credit
05/02/2023
Life can get expensive. From home repairs to sending your children off to college, it all adds up. It makes sense to tap into your home’s equity to help.
With a home equity line of credit, you can get the money you need when you need it with a competitive interest rate, then only pay interest on what you borrowed. A HELOC gives you the ability to borrow what you need when you need it with lower interest rates than many loans and credit cards.
Opening a HELOC can help you enjoy life while still being financially healthy. Here are five different ways you can use your home equity line of credit.
TO MAKE HOME IMPROVEMENTS
A common use for a HELOC is to make home improvements and renovations. This is a great way to build your home’s equity by increasing its value, and can be especially valuable if you’re planning to sell your home or are looking to put a down payment on a second home. Put your dreams into reality, whether it’s new granite countertops or adding an additional bedroom.
TO CONSOLIDATE DEBT
HELOCs can be a good way to consolidate debt because of the low interest rate. This will also help streamline your payments. Your HELOC can help you pay off your high interest debt or credit card debt. This can save you a lot in interest. Just make sure you’re going to be able to stay on track with your payments so that you won’t be adding to your debt.
TO PAY FOR COLLEGE EXPENSES
Unlike a home equity loan, you can use your HELOC for whatever you need, including for school. College comes with lots of expenses outside of just the cost of tuition — think about books, supplies, housing, and the cost of food. You can use your HELOC as an alternative to or in addition to student loans to help you or your child pay for higher education.
TO PAY FOR EMERGENCY EXPENSES
Can be helpful in the case of emergencies like expensive car repairs, vet bills, medical expenses, or other life situations. Your HELOC has low interest, so it can be a good choice for covering the expenses you don’t have the money for right now, but can’t ignore.
TO FUND WHATEVER YOU NEED
When you have a HELOC, it’s there when you need it. Your HELOC will make it easier to cover the costs of life that come up without warning. It’ll provide you with peace of mind if you were to need to take time off work, help care for an older family member, finance a new business venture, help your adult children pay for weddings, or anything else life throws at you. Whatever the case may be, it’ll be easy to access the funds when you need them.
READY TO OPEN A HELOC?
If you could benefit from a HELOC, INOVA Federal is here for you. We offer HELOCs with low rates, no closing costs, and the funds will be easy to access through online banking, Equity Link Visa® card, wire transfer, or in-branch cash withdrawal. Apply for a HELOC online today, or learn more by stopping in to one of our convenient locations or visiting us online.