A Home Equity Line of Credit, or HELOC, lets you borrow money using the equity in your home as collateral. Unlike a traditional loan with a lump sum, a HELOC works like a credit card: you’re approved for a set limit, and you can draw funds as needed during a “draw period,” such as 10 years. During this time, you often only pay the interest. 

 

Key Benefits of a HELOC

Flexible Access: Borrow only what you need, when you need it, for things like projects, emergencies, or expenses that pop up over time.Lower Interest Rates: Because it’s secured by your home, HELOCs usually offer lower interest rates than credit cards or personal loans.
Payment Flexibility: Interest-only payments during the draw period can help manage monthly expenses.Potential Tax Benefits: Interest may be tax-deductible if used for home improvements (check with a tax advisor).


Popular Ways to Use a HELOC

Home Improvements: Fund renovations or upgrades to boost your home’s value.Debt Consolidation: Pay off high-interest debt like credit cards with a lower-rate HELOC.
Emergencies: Access cash quickly if unexpected expenses arise.Investing: Some use funds from a HELOC for business opportunities or real estate investments.

 

Ready to put your home’s equity to work?

Contact us today to learn more or start your HELOC application.