Spring is here and with it comes a variety of home projects. Whether you need a fresh coat of paint inside or out, a bathroom remodel, fresh landscaping, or are looking to spring clean your finances, a Home Equity Line of Credit (HELOC) might be right for you.

What’s a HELOC?

A HELOC is an open-ended loan that is secured by the equity in your home. You can use these funds to pay for expenses that occur over a period of time, such as a larger home renovation that increases the square footage of your house. These loans are flexible and can be used for anything you need.

A HELOC is much like a credit card or any other type of open-ended credit. You can borrow money as needed, up to the credit limit your lender assigns, by making a transfer into your checking account. A HELOC is usually a variable-rate loan, so your monthly payments will change based on your outstanding balance and fluctuations in the prime rate.

When Should I Use a HELOC?

While there are a variety of times where a HELOC might be a good option, a few examples include:

Home Improvements That Add Value

A HELOC is perfect for making improvements that add value to your home. This could include adding an extension on your house, remodeling a backyard deck, or renovating an outdated bathroom. You could also consider making energy efficient updates, such as solar energy systems or energy-efficient designated windows and doors, which could save you every month on your heating and cooling bills.

Consolidating into a Low Interest Rate

Spring cleaning your finances? Use a HELOC to consolidate your debt. Often, a HELOC will offer a lower interest rate than most other loans or credit cards. This means it could be a great option for consolidating high-interest debt into one low, affordable monthly payment.

Unforeseen Home Repairs

Of course, “Anything that can go wrong will go wrong, and at the worst possible moment,” so says Murphy’s Law. A HELOC is also a good go-to for those unexpected and expensive home repairs. This could be the financial key you need when you suddenly need a new roof, water heater, or furnace.

Interested in learning more about if a HELOC is right for you? Visit our website or give us a call at 800-422-5852 to find out how we can help you get started. Equal Housing Opportunity.