Leverage Your Home Equity Scoop preview
With interest rates falling and home prices rising, maybe now is a great time to take advantage of your home equity by using a Home Equity Line of Credit (HELOC). There are so many ways to use these funds. A HELOC can be a fantastic way to find additional funds in a declining rate environment. Tapping into the positive difference between what’s owed on a home and its current value will give you the funds you need for a large expense with no additional strings attached.
Here are some avant-garde uses of these funds:
One of the most popular uses for home equity is home renovations and improvements. These can be as important as adding a 1,000 square foot extension to your home or as minor as replacing an old carpet with a new hardwood floor.
Using the equity in your home for home improvement projects is a smart move. On the one hand, the money you invest in renovations acts like an investment. If you choose improvements that increase the value of your home, you may get back the money you spent or even see a return when you sell your home. Also, if you are using the funds from a home equity loan to increase the value of your home, you may be able to deduct interest paid on the loan for your taxes (be sure to consult your CPA on this).
Another common use of a home equity loan is to consolidate high interest rate debt. Paying off multiple debts with high interest rates (like credit cards) can be tedious and difficult to manage. Worse yet, high interest rates mean that more of the borrower’s money goes to the lender and less to paying off the principal of the debts. Using a HELOC to consolidate debt into a single, interest-free or low-interest loan can reduce several thousand dollars and help shorten the repayment term by several years.
When interest rates drop, funding a college education through a HELOC instead of a high-interest student loan may be a smart move. Likewise, homeowners who are struggling to pay off their student debt without defaulting on the loan might want to use their home equity to pay off debt quickly and replace it with an easier low-interest loan. to manage.
Finally, applying for a HELOC at Highmark means there is no minimum required, you can withdraw the funds over 5 years, access the money when you need it, only pay interest on what you use , deduct interest on your taxes (if applicable), and receive prompt, local decision making and processing from our friendly and attentive staff. Call the Highmark Spearfish Hall.