What is a Home Equity Line of Credit (or a HELOC) and what can it be used for? [Video]

My Home October 23, 2017

 

As a homeowner, you may benefit from the equity in your home to pay for major expenses with a Home Equity Line of Credit.  it’s a flexible and convenient way for you to borrow funds against this equity for things like remodeling your home, consolidating debt or larger purchases, even purchasing a car.

First, it’s important to understand what home equity actually is.  For example... if your home is worth $300,000 and you owe $220,000 on your mortgage, this means you would have $80,000 of equity that you may be able to borrow against.  

Using this equity as a line of credit gives you multiple ways to quickly and conveniently access available funds that can be used for home or non-home related expenses.  Home equity lines of credit can generally offer lower interest rates and higher credit limits than other forms of credit. Homeowners can use them for home improvements, debt consolidation or making large purchases.  And could be tax deductible.

Regardless of who your mortgage is with, if you have equity in your home, here at U.S. Bank, we can help you better understand your borrowing options to make the process efficient and painless.

Meaning your next big project or purchase might be closer than you think!

For another video about Home Equity Lines of Credit, visit:  How does a Home Equity Line of Credit (or a HELOC) Work?