Is a home equity line of credit (HELOC) right for you?
If you are a homeowner looking for a loan that provides flexibility and a competitive interest rate, this option is worth exploring.
If you own a home and need a loan, you may be in luck. If your home is worth more than what you owe on your mortgage and you’re looking to stay a while, then a home equity line of credit could be a good option.
What is a home equity line of credit?
A home equity line of credit (HELOC) lets you borrow money using the equity in your home as collateral, essentially making it a second mortgage. Equity is the difference between the current value of your home and what you still owe on your mortgage. Depending on how much equity you have in your home will determine how much HELOC you’re qualified for.
Using your home equity, a HELOC gives you a line of credit, up to a limit, that you can use as you see fit. A HELOC is different than a home equity loan, which comes as a lump sum. With a HELOC, you can spend as much of it as you like, the same way you would use a credit card.
Why would I choose a HELOC?
A HELOC can be a sensible choice when used responsibly. Some of the benefits of a HELOC include:
What do I need to know when choosing a HELOC?
Why would I consider not getting a HELOC?
How can I use the money from my HELOC?
You can use your HELOC funds to finance a variety of needs, such as major education or medical expenses, smaller purchases or home improvements. And, just in case emergencies arise, your HELOC money can help you there, too.
Learn more and apply for a HELOC.
U.S. Bank, U.S. Bancorp Investments and their representatives do not provide tax or legal advice. Your tax and financial situation is unique. You should consult your tax and/or legal advisor for advice and information concerning your particular situation.