When it comes to utilizing the equity in your home, the most common use is home improvement projects, but there are also many other ways to use a Home Equity Loan or Line of Credit (HELOC).
Projects such as remodeling a kitchen, upgrading exterior siding, and making certain energy-efficient upgrades can add value to your home. A HELOC operates as a revolving line of credit, which allows you to borrow only what you need, pay it back, and then draw more as your project progresses.
It's always a good idea to have an "emergency fund" available, but having a HELOC on-hand to cover unexpected and costly expenses is another option that provides added peace of mind if a costly emergency should arise.
Consolidating high-interest debt could save you money in the long run. Paying off your debt using a Home Equity Loan can save you money and pay down the principal faster by combining your high-interest debts into one monthly payment.
A HELOC may be a good option for ongoing education expenses like tuition, books, and supplies. Once college is complete, a Home Equity Loan may be a good way to consolidate student loan debt.
This article is for general information only and not intended to provide specific advice or recommendations for any individual.