HELOC…why & what to do with one.
You hear all the time about putting your home to work for you but how do you make that happen? As you pay down your mortgage your home’s equity (or value) increases. Once that equity reaches a certain level many lending institutions offer a home equity line of credit allowing you to borrow against the unencumbered value in your home.
This is a great way to catch up on those overdue home repairs such as new roof or more energy efficient windows. Or maybe you’ve been talking about building a backyard deck, putting in a pool or even redoing your entire landscaping; these are things a HELOC can be used for.
A HELOC is also an excellent way to afford some of life’s little luxuries. Maybe movies are your passion and you’ve always wanted a unique home theater; a HELOC can help with that. Gourmet kitchens have become very popular because of all the cooking shows now on TV and with the help of a HELOC you can get the kitchen of your dreams while also increasing the overall value of your home. Or throw caution to the wind and go on that once in a lifetime vacation!
Just don’t let that home sit there! You’ve worked hard to pay down your mortgage and now with interest rates so low, it’s the perfect time to take full advantage of that hidden money.