What Is a HELOC?
A Home Equity Line of Credit (HELOC) lets you borrow against the equity in your home on a revolving basis, similar to a credit card but with much lower interest rates.
Key Benefits
- Flexibility: Borrow only what you need, when you need it.
- Lower Rates: HELOC rates are usually much lower than personal loans or credit cards.
- Interest-Only Payments: Option to pay just the interest during the draw period.
- Versatility: Use for renovations, education, investments, or emergencies.
Things to Consider
- Variable Rates: HELOCs are tied to prime, so payments can rise when rates increase.
- Discipline Required: Easy access to funds can tempt overspending if not managed wisely.
- Equity Requirement: Typically, you need at least 20% equity in your home.
The Bottom Line
A HELOC can be a valuable financial tool when used responsibly. I’ll help you assess if it’s the right option for your situation and guide you through the setup process.
