7 reasons you should get a HELOC
Date: Feb 13, 2023
HELOCs are becoming increasingly popular to access equity in your home. Here are seven reasons why you should consider getting a HELOC now:
Want to put in a patio or an addition on your home? You can get a HELOC to finance home improvements. HELOCs are tax-deductible if used for home renovation projects. This means that you can potentially save even more money by getting a HELOC.
You might have your emergency fund completely tapped out. If that’s the case or if you have other debts, a HELOC might fit the bill. You might not want to tap into other investments because you’ll pay capital gains taxes.
Technically, you can use a home equity loan to pay for anything but you might want to use the money for larger expenses. Here are some of the most common uses for home equity loans. Take a look at a few other reasons you might want to use a HELOC for besides home repairs or remodeling your home:
No matter why you decide to tap into a HELOC, remember that you’re using your home as collateral, which means you could lose your home if you fail to make your payments.
This may be a good time to consider a HELOC, because the Federal Reserve has kept interest rates low due to the damage COVID-19 has inflicted on the economy. It might be cheaper overall for you to pay off high-interest debt with a HELOC.
If you are self-employed or have an irregular income, a HELOC can act as a financial safety net. If you suddenly find yourself unemployed, the HELOC can help cover expenses until you find another job.
Compared to unsecured credit cards or personal loans, HELOCs usually have much lower interest rates. This can save you a lot of money overall.
Hitch is the simplest way to get a HELOC. And you can get started from the comfort of your own home. All you need is five minutes and your most recent tax return. So what are you waiting for? Get started today.