Five Reasons to Use a Home Equity CreditLine for Spring Renovations
Is your home in need of a spring makeover? A home equity line of credit (HELOC) can be a useful tool for homeowners looking to fund home renovations. Here are five reasons to consider using an SLFCU Home Equity CreditLine.
ACCESS TO FUNDS
A HELOC allows you to borrow against your home’s equity – that’s the amount of your home’s appraised value minus any current mortgage balances. Your line of credit is secured by using your home as collateral. Just like a credit card, you can borrow what you need, pay it back, and borrow it again as needed through the draw period. This can be a great option for homeowners who need flexibility for their renovation project.
LOW INTEREST RATES
HELOCs typically offer lower interest rates than other forms of borrowing, such as credit cards or personal loans. This is because the line of credit is secured against your home, which reduces the lender’s risk. This can result in significant savings over time.
A HELOC provides a lot of flexibility when it comes to how you use the funds. Unlike a first mortgage, you can withdraw and repay money as needed. This means you can use the funds as a revolving line of credit, which can be particularly useful if your renovation project spans several months.
The interest you pay on a HELOC may be tax-deductible, which can result in additional savings. It is important to consult a tax professional to see if you are eligible for this deduction.
INCREASE IN HOME VALUE
Renovating your home can increase its value, which means you may be able to sell your home for a higher price in the future. This can help offset renovation costs and provide a return on your investment.
A HELOC can be a useful tool for homeowners looking to fund home renovations. Learn more about SLFCU’s Home Equity CreditLines to see if they are the right option for you. Visit slfcu.org/HomeEquityCreditLines for more information.
« Return to "View All Articles"