5 Ways to Use a Home Equity Line of Credit to Capture Life’s Big Moments
April 5, 2023 | News
Use your home’s equity to simplify your life and make your dreams come true with a Home Equity Line of Credit (HELOC) from MembersOwn.
What exactly is a HELOC, and how do you use one? We’re glad you asked.
A HELOC is a loan secured by your home, using its value as collateral. The amount of money you’ll get in your line of credit is dependent upon the amount of equity you have in your home, or the “Equity” in HELOC. The Federal Trade Commission defines equity as the difference between what you owe on your mortgage and how much money you could get for your home if you sold it.
With a HELOC, you pay only interest on the amount of money you use. This makes it a revolving line of credit you can draw on as needed, like a credit card.
With so many options for making smart financial decisions, let’s dive into the top five ways to use a HELOC.
If it’s time to spruce up an outdated kitchen or make expensive upgrades, you could fund your renovation project with a HELOC and enjoy lower interest rates than a typical personal loan or credit card.
A HELOC can help with the cost of education, whether it’s for college or a child in private school. Use the HELOC to pay off older student loans or current tuition costs.
3. Consolidating Debt
High-interest debt can eat away at your monthly budget. Use a HELOC to lock in a lower interest rate and make paying down debt more manageable through a single line of credit.
According to The Knot, the average cost for a wedding is $30,000. With that in mind, a HELOC is a great way to have a sizeable amount of cash on hand to finance your big day.
5. Medical Bills
Like consolidating high-interest debt, a HELOC can be used to pay off multiple medical bills so you can focus on paying back a single line of credit.
While these are our top five uses for a HELOC, the possibilities for capturing life’s big moments are nearly endless. As always, being responsible with your finances is important, especially when using your home as collateral.
At MembersOwn, we care about your financial success and are here to help you decide if a HELOC is right for you. Plus, you can take advantage of our free financial counseling to make the most of your money.
If you’re interested in a HELOC, our friendly lending specialists are ready to help!
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