A home equity line of credit (HELOC) is a financial tool available to homeowners who have equity in their home. A HELOC is a loan in the form of a line of credit and can be used towards home improvements, vacation, education expenses, wedding planning and more. Although it is an option for most people, the advantages vary from person to person. All factors should be thoroughly reviewed before you decide if it is right for you.
A HELOC allows a person to take out money whenever they need it, which is an option that not many loan types provide. With this distinguishing feature, a person can get the money whenever they need it up to a certain limit.
Great Payment Options
A HELOC provides an alternative to making payments only on the interest every month, which could be a convenient solution for people who do not want to repay the principal amount until later.
In most cases, individuals with a HELOC debt are eligible to claim the interest rate they pay as a tax write off. However, it is wise to consult with a tax expert to make sure that you are eligible for tax benefits.
Improved Credit Report
Once a person starts making HELOC payments, timely and complete payments can contribute toward building a good credit score and ultimately a better credit report.
HELOC loans come with comparatively lower closing costs and other additional fees, as compared to other loans. With some lending institutions, there are not even application or appraisal fees.
Contact our staff with Metro Credit Union and get more information and current interest rates and closing costs today.