A Home Equity Line of Credit (HELOC) allows you to access up to 80% of the equity in your home to make home improvements, consolidate debt, pay college tuition, or finance other large expenses.
HELOCs offer numerous benefits and flexibility to homeowners, including:
- The interest payments may be tax deductible. You should consult a tax advisor regarding the deductibility of interest and charges for the plan.
- They usually have low interest and minimum payments.
- Homeowners do not need mortgage insurance with HELOCs.
- The home equity line of credit is used as you need it and can be paid off at any time. You can draw on your line of credit from time to time by writing checks up to the total amount available. Your monthly payment is based on the amount of your line of credit you have used. You enjoy a lot of flexibility and control over your money.