In recent years, home prices have skyrocketed and continue to increase. Whether you’re a prospective buyer or looking to make renovations before putting your house on the market, material shortages have led to further price hikes and delays.
The pandemic has also caused the inflation of many other goods and services. If you’ve found yourself in a situation where you need cash to make ends meet or reach your goals, consider a home equity line of credit (HELOC) from Ion Bank. This type of loan is secured by the value of your house and often has lower interest rates; using your home as collateral is considered less risky than other borrowing options. What can you accomplish with a HELOC?
Make Home Improvements
Homeowners often use HELOC funds for property renovations, which should increase the value of your home for future resale. Consider using this revolving line of credit to tackle:
- Kitchen remodeling
- Bathroom remodeling
- Roof replacement
- Building an addition
- Improving accessibility
- Updating HVAC systems
- Installing a new deck
- Replacing garage door
The average American carries over $92,000 in debt! Whether to pay off credit cards, student loans, a mortgage or medical debt, a home equity line of credit can consolidate what you owe.
A HELOC can be particularly helpful for refinancing high-interest debts at a lower interest rate. However, late or missed payments could put your home at risk of foreclosure.
Make Significant Purchases
If you’ve been dreaming of a vacation home, have a wedding to fund or want to take a trip, the longer repayment period of a HELOC can be attractive for large purchases. Yet this may not be the best option if you’re spending beyond your means. Evaluate your current debt and whether you can truly afford to take on another line of credit.
Prepare or Support Retirement
We try our best to plan for retirement but if you need to unlock cash flow, a HELOC can help you live more comfortably. The funds can also support you if the stock market takes a sudden downturn or you need to make your home more accessible due to physical changes.
Peace of Mind
Most people take out a home equity line of credit for a defined purpose but it’s important to note you don’t need to use all the money right away. The typical draw period is up to 10 years! If an emergency arises, a HELOC can help cover unexpected expenses, rather than tapping into a savings account or retirement fund.
Take advantage of the equity in your home! To learn more about applying for a HELOC, contact us today.