How long have you lived in your current home? Is it time to start considering home improvements? Perhaps, you’ve been putting off a kitchen upgrade or bathroom remodel? While your home is one of your most valuable assets, it’s important to ensure your house is well-maintained and will retain its value. Even better, with many home improvement projects, your home’s value may even increase in value.
Additionally, knowing that you’ll have enough money to cover your home-improvement costs can make any update process easier. By taking advantage of a home equity line of credit (HELOC), you’ll have access to the funds you need, when you need them, for your home-improvement projects.
Advantages of a HELOC
A HELOC is a line of credit that gives you access to funds based on several factors including the following:
- Your home’s market value.
- The equity you’ve built up in your home.
- Your credit score.
- Any outstanding debts against the home.
The limit that’s available to you is determined by things like the current value of your home and updates you’ve already put into it. Consider how much your home’s value can increase with updates like new hardwood floors, a new deck, or even a kitchen remodel!
Using a HELOC has many advantages, with the biggest one being the flexibility it offers. You’re able to utilize the funds as needed, instead of taking a lump sum of funds all at once. You’ll often find more competitive interest rates versus standard credit card rates. Plus, the interest on your HELOC may be tax-deductible if you use the money to buy, build, or substantially improve your home. As always, consult with your certified tax professional regarding your specific tax situation.
Learn more about how a HELOC can help with your home improvement projects.
What can a HELOC be used for?
With the many advantages a HELOC offers, it’s ideal for one to be used for various home improvement projects. This flexible line of credit allows you to take what you need, when you need it, to help finance costly home repairs, upgrades and improvements, or other financial expenses. Whether you’re planning to remodel your kitchen or bathroom, update your landscaping, or pay for a vacation, a HELOC from First Bank can help you with your financial needs. To take advantage of a special home equity line of credit rate from First Bank, simply contact us!
Sources: NerdWallet, Bankrate