Four practical ways to use a HELOC
Let your home work for you.
While you can use a home equity line of credit, or HELOC, for home improvements, such as a new roof or a kitchen remodel, there are many other ways you can leverage your home’s value.
You’ve put in the work to make your house a home. Now, with help from a HELOC, let your home work for you in the following ways:
1. Major purchases: Fund items such as a new appliance, a car or boat.
A HELOC can be a wise way to finance the purchase of a new fridge, washer, or dryer. Or, if you’re in the market for something more fun – say, a boat – a HELOC can get you the cash you need, when you need it, at a great rate.
2. Down payment for a second property: Purchase a vacation home, investment property or apartment in a retirement community.
If you have enough equity in your home, a HELOC can be a great way to access funds for buying another property – whether it be for a vacation home or investment property. HELOCs can also be useful if you're on a waiting list for a home in a retirement community. When a spot becomes available, you'll have quick access to funds for a down payment.
3. Debt consolidation: Pay off high-interest cards or other debts.
HELOCs often have much lower interest rates than most credit cards. If you’re up to your nose with debt payments, a HELOC might be a wise way you can pay down debt without worrying about high interest charges.
4. Emergency expenses: Cover unexpected costs like medical bills or car repairs.
With a 10-year draw period at Everence® Federal Credit Union, a HELOC can act as an emergency fund – a readily accessible source of money that can act as a safety net. If your emergency has a clear end in sight, a HELOC might be a great solution when crises arise.