A HELOC, or home equity line of credit, allows homeowners to borrow against the equity of their home
When it makes financial sense, a HELOC can work well as a tool for homeowners who require cash now as they typically offer a low interest rate and the freedom to choose what the money is used for. A HELOC is a fixed-rate line of credit with a set term. The full line of credit is disbursed, in cash, at the time of funding.
Pay for large costs you don’t have the money for
Common uses for a HELOC include a big purchase, consolidating debt, or home renovations. In other words, big ticket items that most people don’t have the money for in their bank accounts. For example, a homeowner could get a HELOC to use their home equity to pay for a new roof on their home.
Improve the value of your home
The interest you pay on a HELOC when renovating your home may be tax-deductible. If you’re using your HELOC to renovate your home, you could not only potentially save on taxes, you could be raising the future value of your home, while borrowing from the current value of your home.
Getting a HELOC through Homepoint
Applying for a Homepoint HELOC can be done completely online. (more…)