Use Your Home's Equity!
With today's home prices rising, many homeowners have equity in their home that can be put to good use! A larger amount of qualified borrowers will continue to make Home Equity Lines of Credit (HELOC) popular to take advantage of due to low interest rates. Here are some ways to use your equity to your advantage:
1. Make Updates To your Home. Smart improvements are great! They add value to make your home more marketable when you are ready to sell. Update a kitchen or bathroom, clean up your landscaping or add a new front door to make your curb appeal better. Remember not to over improve your home, that can make it difficult to recoup your cash when you sell.
2. Pay For Your Kids College. The interest rates on a HELOC can be far less than a student loan and the maximum loan amount can be higher. Just check with a professional to make sure it won't put you in financial risk down the road.
3. Pay Off High Interest Credit Cards. Again, the interest rates are far lower than the average credit cards. Also, the interest can be tax deductible.
4. Leave Your Equity Alone. Adding debt to your home may not work for everyone. Some homes may not have enough equity to make it worth while, and many times it's great to save it and use it for purchasing a new home when you sell. Make sure it works for you!