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How to Use a Home Equity Line of Credit

Jan 07, 2021
A home equity line of credit or heloc can make your kitchen look like this gorgeous new white remodel.

People who own a home have options when looking for additional funds. For people who are wondering how to use a home equity line of credit, or HELOC, to make their lives easier, there are several ways that contacting your credit union can be useful.

A Home Equity Line of Credit can be Used to Finance Large Purchases

It’s not unusual for people to run into an expensive purchase and wind up scrambling to cover the cost. For people who are looking for a source of funds to finance this purchase, a home equity line of credit could be the answer. This option makes financial sense for many people because a home line of credit typically has a low-interest rate and the interest is often tax deductible, so be sure to consult your tax adviser when reviewing your options.


People Can Use their Home Equity Line of Credit to Purchase Other Properties

Did you know that you can also use a home equity line of credit to purchase other properties? When people find a property that they believe is worth investing in, they may be searching for a quick source of cash. People can open a home equity line of credit in advance to give them the flexibility that they need to seize such an opportunity. Using a home equity line of credit is a simple way to finance other investment opportunities.


couple walking towards home

Use a Home Equity Line of Credit to Finance Home Improvements

It is a smart idea to use a home equity line of credit to finance the improvements on your home because many of these renovations may lead to an increase in home value. There is a significant opportunity for people to gain a valuable return on their investment through home renovations. Of course, these renovations are also a great way for people to enjoy their property long-term if they plan to stay in the same place for an extended period of time. For example, families might use a home equity line of credit to add a room for a new child or renovate their kitchen.


Finance Long-Term Care

Many people don’t realize that they will encounter the vast majority of their healthcare costs in the last few years of their life. This can place them in a financially difficult position. A home equity line of credit is a great way to come up with funds quickly to pay for long-term medical care.


Wait Out the Market

The market is full of ups and downs; however, some retirees who rely heavily on their investment portfolio for income may not have the time to wait for the market to rebound. Utilizing the equity in their home, retirees can access money quickly offering them flexibility and peace of mind knowing they are covered as they wait for the market to recover.

If you need extra funds and have equity in your home, consider opening a Home Equity Line of Credit at Peach State! Visit any of our branch locations or call 770.580.6000 to speak with a Loan Specialist.

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