10 things you can do with a HELOC
Date: Jan 19, 2023
Are you a homeowner with major life goals that require access to capital? Perhaps a HELOC is exactly what you need.
A home equity line of credit, commonly referred to as a HELOC, is a home loan that’s backed against your home’s equity.
Technically a second mortgage taken out on your home, a HELOC is a popular tool leveraged by homeowners with strong credit and qualifying equity to provide access to funds — at a competitively low interest rate.
You’ve heard that HELOCs give you the financial power to take care of high-cost needs in your life, but what does that really look like?
To help you better understand how a HELOC puts your accumulated equity to work for you, here is a list of things you can do with a home equity line of credit.
One of the most popular ways to use a HELOC is to fund the renovation of your home.
If you’ve been dreaming about creating your dream house, a HELOC can help you fund the projects — covering the contractor service fees, cost of materials, and other expenses related to the construction, such as storage or hotel fees if you need to clear the rooms in your home that are being worked on.
The total cost of a renovation project varies depending on the scope of work, but a HELOC can make it possible for you to finally move forward with the real estate upgrades you’ve been waiting for.
Perhaps you don’t want to renovate, and instead are interested in adding more amenities to your home. As more homeowners are looking to make their homes the one-stop-shop for all of their lifestyle needs, perhaps you’re interested in adding the following features to your home:
If these upgrades appeal to you, a HELOC can provide you with the money you need to make it happen.
You don’t need to invest in large-scale renovation work to make your home feel rejuvenated. You can refresh your home by conducting cosmetic improvements across the property. Interior upgrades can include:
Whether you want to hire a professional interior designer or conduct a DIY redecoration project, a HELOC can provide you with the money you need to cover the costs.
Are you saddled with debt on a high-interest line that you’d like to pay off in one go? You can leverage a HELOC to settle inconvenient and costly debts. By using the money drawn from your HELOC, you can pay off the debt from its original line.
That debt will now contribute to your HELOC principal balance, so it would not necessarily get rid of the debt completely. However, you could improve your credit score and reduce interest costs by consolidating the debt with your HELOC.
Is there a big wedding in the family coming up? Homeowners often seek out HELOCs to pay off large-ticket items and events, such as weddings and other celebrations.
The average cost of a wedding in the United States is $20,300, as of August 2022. To prevent one of the biggest moments in life from becoming unmanageable financial stress, a HELOC can help cover the upfront costs.
Planning to send your children off to school, or are you returning to school for higher education?
Whatever the circumstances, tuition is expensive. Anyone who has funded tuition also knows that, even after you pay for the semester, each class incurs additional costs for books and other required supplies.
A HELOC is a great solution to help you cover these necessary expenses.
Do you want to build up a savings account? Perhaps you want to put away cash for a specific purpose like retirement, or maybe you just want to have an emergency fund that you can tap into when circumstances require it. Whatever your motivations are, it never hurts to have savings put away.
If you’re searching for a source of quick savings, a HELOC can give you access to the money you need to feel secure.
Another popular reason why qualifying homeowners take out a HELOC is to pay for big vacations. If you’ve been wanting to take your loved ones on a dream vacation to make memories that will last forever, a HELOC can give you the financial power to finally stop daydreaming and actually book the reservations.
Are you looking to invest? Maybe you’re looking to put cash in the stock market, or maybe you are thinking about investing in a new business. Regardless of asset class, a HELOC can give you the cash you need to fund your investments.
If you will be making a big purchase soon that requires a down payment, a HELOC can provide you with the cash you need to put money down as collateral on the new purchase. Maybe you’re buying a car, boat, motorcycle, jet-ski, RV… the list goes on, but the need to put money down remains consistent.
Did these ten ways that you can use a HELOC inspire you to look into a home equity line of credit of your own? If so, get in touch with Hitch to learn more about our frictionless HELOC. Click here to check your HELOC offer from Hitch!