03/18/2021: Six Ideas for A Home Equity Line of Credit
A home equity line of credit, or HELOC (pronounced he-lock), is a loan in which the lender agrees to lend a maximum amount within an agreed period (called a term), where the collateral is the borrower’s equity in their house (akin to a second mortgage). Because your home is one of if not the most valuable asset you have, leveraging it in smart ways can make great sense for your family. Think of it in the same way you would think of having ‘money in reserve’ – using the equity in your home if and when you need it.
Here are just Six Ideas of many, for how you could put your HELOC to work for you:
1. Have a child heading to college? Sometimes tough choices have to be made about this school over that school, not because of student grades or preference, but simply on budget alone. Many homeowners use home equity credit lines to fund education. Your home equity line of credit can offer you and your student more flexibility when it comes to selecting schools.
2. Have a home project you want to fund? Here at Seneca Savings we see customers utilize their home’s equity for a line of credit that can fund the basement refinishing project or that backyard paradise you’ve always dreamed about. Or maybe there’s a big roof, window or siding project you want to undertake but have been putting it off because it’s a large chunk of cash that’s required to complete it. Using the equity that’s already in your home to fund home improvement projects can make good sense and we’re help you build that bridge.
3. Re-structuring Debt If you’re paying high interest rates on credit cards and other acquired debt, and you’re sitting on equity in your home, you may be advised to consider re-structuring/consolidating that debt and relieving yourself of those high interest rates. This can also assist you with streamlining your cash flow and simplifying everything into one, easier payment. It takes a careful look with an expert to help you best determine if this option makes sense for you.
4. Family Vacation There’s no question that the pandemic has shifted things dramatically for travel. So if you’re considering a family vacation after a year’s worth of cabin fever, using your HELOC to fund your trip is a feasible option. Whether you’re musing about a cross-country RV trip or taking the family to Disney World, generally you’re talking about a sizable dollar amount to pull that all together. Consider a home equity line of credit to make the dream a reality.
5. Medical bills still remain one of the leading causes of bankruptcy in the U.S. If you’ve got a big medical bill looming over your head, a HELOC could be just the ticket to get rid of that headache.
6. Emergencies happen. While it’s ideal to have an emergency fund on hand for anything that can go wrong, from the family car to a dental bill or worse, the HELOC can give you that needed cushion, and peace of mind if and when that emergency circumstance arises.
In the business of building bridges and changing lives
Because the HELOC does indeed carry a % payback and it’s utilizing your most valuable asset, your home, most people do not choose to use them for day-to-day expenses. If you’d like to see if you have enough equity in your home to pursue a home equity line of credit, as well as have an informed conversation about the best use of it for you and your family, reach out to us today. We’re in the business of building bridges and changing lives. As a local bank, our decisions are made here locally too. You’re likely to pass one of our talented team in an area restaurant, at a school function, or at the grocery checkout line. We serve the Baldwinsville, Liverpool, North Syracuse, Bridgeport and surrounding communities and we’d love the opportunity to earn your business and help you get from here… to there. Contact Us Today! Seneca Savings is a Member FDIC, Equal Housing Lender.