Using the Equity in your home is simple and easy. Home Equity is the current value of your home, minus the current mortgage on your home. There are two different home equity products that allow you to access a portion of the equity in your home with a Home Equity Line of Credit (HELOC).
Home Equity Line of Credit (HELOC) works similarly to a “credit card”. You can access a certain amount, based on either a minimum amount or the equity in your home. Home Equity Line of Credit is a line of credit with a variable rate and used when you’re not sure how much you’d like to borrow but want the flexibility to use it your way, based on your needs.
You may be able use these funds for multiple purposes including:
- Create rainy day fund
- Renovations for your home
- Additional interior or exterior space for your home
- Large purchases like automobiles or boat
- College tuition
- Wedding
You can also repay some of the amount back or all the amount utilized and then those funds are available again for you offering flexibility to your ever-changing needs. Home Equity lines of credit may be a good option for tapping the equity in your home but does depend on the amount you would like to borrow. Keep in mind your monthly payments will be based on your outstanding principal and the applicable Annual Percentage Rate.