3 good uses for a home equity line of credit (HELOC)
Paying down your mortgage loan enough to build up some equity in your home is a big accomplishment – and one that opens up enticing opportunities!
Once you’ve built up some equity, you can apply for a home equity line of credit, or HELOC. With a HELOC, you will have access to cash at a more affordable rate than if you used a credit card, and you will only pay interest on what you actually use.
You can use a HELOC for any purpose, but here are three common—and smart—ways to use one:
- Tackle your debt. You can use a HELOC to pay off high-interest credit card debt, personal loans, and car loans. You’ll do this by consolidating these debts into a single monthly payment, often at a lower interest rate than you’d been paying previously.
- Upgrade your home. It’s common to fund home renovations or improvements with a HELOC. Be sure to make home improvements that pay off, though. Certain home improvement projects—especially upgrades to bathrooms and kitchens--can raise your home’s value.
- Prepare for the unexpected. A HELOC can help preserve peace of mind during emergencies – from large medical bills to job loss. If you have a HELOC set up, you can borrow any amount up to your established limit whenever you need it.
We can help
We offer many options that can put your home’s equity to work for you. Learn more.
Home equity loans are available to existing customers, or new customers who live or work in Minnesota, for properties located in AZ, FL, IL, IN, IA, KS, MN, MO, NE, ND, SD & WI.