Fall has officially arrived, and there's no better time to tackle your financial to-do list. What money moves are you planning to make this season? Whether you want to fund a major home project, reduce debt or boost your rainy-day fund, a home equity line of credit (HELOC) can be a smart way to borrow for significant life expenses!
What is a Home Equity Line of Credit?
A home equity line of credit allows you to borrow against your home's equity — the difference between what you owe on your mortgage and what your home is currently worth.
When you open a HELOC, you're able to draw from available funds on an as-needed basis, similar to a credit card. This gives you the flexibility to borrow any time, for any purpose!
Is a HELOC right for you? Here are three smart reasons to put your home equity to good use this fall:
#1: Make home updates or repairs The beginning of a new season often gives homeowners renewed energy to tackle home improvement projects such as room additions, renovations, and repairs. While these projects can be pricey, a HELOC gives you the flexibility to borrow funds as needed and repay over an extended period. Plus, if you're already planning to put your home on the market, a HELOC can help you make attractive updates and add even more value and “curb appeal" to your home! #2: Pay off high-interest debt If you want to give your finances a clean slate, paying down your debt is a great way to get started. Instead of paying off high-interest credit cards and loans one by one, you could consolidate all of them into one lower-rate HELOC. This way, you'll only have one payment to manage. Plus, with a lower interest rate, you can free up funds for other important financial goals like building your emergency fund or saving for retirement! #3: Cover medical bills and unexpected expenses We can't always predict the “life happens" moments that will impact our finances. For example, medical expenses can be significant, even with health insurance. When you need access to funds quickly, a low-interest HELOC can be a convenient way to cover unexpected medical costs. Likewise, HELOC funds can support your emergency savings, giving you an additional safety net when emergencies occur, instead of turning to high-interest rate credit cards or payday loans.
#1: Make home updates or repairs
The beginning of a new season often gives homeowners renewed energy to tackle home improvement projects such as room additions, renovations, and repairs. While these projects can be pricey, a HELOC gives you the flexibility to borrow funds as needed and repay over an extended period.
Plus, if you're already planning to put your home on the market, a HELOC can help you make attractive updates and add even more value and “curb appeal" to your home!
#2: Pay off high-interest debt
If you want to give your finances a clean slate, paying down your debt is a great way to get started. Instead of paying off high-interest credit cards and loans one by one, you could consolidate all of them into one lower-rate HELOC. This way, you'll only have one payment to manage. Plus, with a lower interest rate, you can free up funds for other important financial goals like building your emergency fund or saving for retirement!
#3: Cover medical bills and unexpected expenses
We can't always predict the “life happens" moments that will impact our finances. For example, medical expenses can be significant, even with health insurance. When you need access to funds quickly, a low-interest HELOC can be a convenient way to cover unexpected medical costs. Likewise, HELOC funds can support your emergency savings, giving you an additional safety net when emergencies occur, instead of turning to high-interest rate credit cards or payday loans.
Open the Door to Smarter Borrowing with WPCU's HELOC!
With a Home Equity Line of Credit from Wright-Patt Credit Union, you can use the existing equity in your home to help meet your needs and goals. Our HELOC offers a low interest rate and easy, anytime access to funds so you can borrow smarter for life's big expenses.
Learn more about the benefits of a Home Equity Line of Credit from Wright-Patt Credit Union.
*All loan applications are subject to credit review and approval.