Using Home Equity Loans and HELOCs
Home equity loans and lines of credit help you make the
most of the equity you've built in your home. On the surface, these loan
products seem complicated, but they’re really quite
simple—you’ve steadily built up equity in your home; now
you’re just borrowing against value you’ve built up through your
hard work.
And there are lots of ways to use home equity loans and lines of credit to build
up your financial security. Here are just some of the ways you can use these
products to your advantage:
-
Reduce your monthly payments by consolidating debts*
Lower your monthly payments on credit cards and
other consumer loans, by lowering your interest rate, and exchanging compound
interest for simple interest.
- Give yourself a tax break
Wouldn’t you like to keep a little more of
what you make? Exchange non-deductible interest (such as interest on credit
cards and car loans) for loan interest that in most cases is fully
tax-deductible. Please see your tax advisor for complete details about this
feature.
- Get better terms on a home purchase or refinance loan
Give yourself a headstart by using home equity as
part of your down payment. Please see your tax advisor for complete details
about this feature.
Be ready for investment opportunities, unexpected
purchases, or emergencies as they come up (HELOC only).
- Take cash for a specific reason
Earmark funds for specific projects or purchases.
You can use home equity loans for nearly anything—remodeling, paying
college tuition, buying a new car, or taking a well-deserved vacation.
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