Funding the Future with a HELOC
If home improvements, building an ADU, buying a second home, or having cash on hand - just in case, are in your future, you may want to consider a Home Equity Line of Credit or HELOC. This blog will outline a HELOC and why it may be a smart financial move for you.
Securing a HELOC is a very smart financial move for two reasons.
A HELOC is a smart way to finance home improvements or consolidate other, more expensive debt. Because it is secured against your home, HELOC rates are lower than credit cards. And if you use the funds to improve your home, the interest cost is tax deductible.
When you are in a good position (have a job, good credit, and home equity), getting a HELOC now is smart financial planning. When you need credit the most, you may not be in the best position to secure it (i.e., you have lost a job, have significant credit issues, or perhaps your home value has fallen).
A HELOC is like a fire extinguisher kept under your sink. You get a fire extinguisher and place it under your sink, hoping you never need it, but you are certainly glad you have one if the need arises.
With mortgage rates coming off their historic lows, it generally doesn’t make sense to refinance your first mortgage to pull cash out of your home. Securing a HELOC allows you to access your home equity AND keep your current mortgage (and its low rate!) in place.
It may seem confusing to know the best options for you and your family, but that’s why I am here. Give me a call to learn the options available to you. It would be my pleasure to answer any questions you may have.