A home equity line of credit (HELOC) provides homeowners with a convenient way to use the equity in their home. Once approved for a HELOC, borrowers can spend the funds however they choose. Here are some of the primary advantages of a HELOC!
Only borrow what’s needed: A HELOC does not provide borrowers with a lump sum of cash. Instead, like a credit card that is only used when necessary, the homeowner can withdraw funds from the HELOC as appropriate. This makes a HELOC a great option to pay for expenses when there is not a known price tag. Also, because the borrower is only paying interest on the money they actually withdraw, they have the freedom to take out a larger line of credit and decide how much of it to use later on.
Use it for anything: One of the most popular uses for home equity is for home renovations and improvements. However, borrowers are not limited to this option! You should consider your HELOC the “anything” loan…as it can be used to take a vacation, consolidate high interest debts, cover college expenses, and more.
Flexible terms: At SeaComm, you can enjoy flexible terms and repayment plans for a HELOC. During the draw period, homeowners can withdraw funds from the HELOC as needed and use the money however they please.
Potential tax benefits: As per the Tax Cuts and Jobs Act of 2017, the interest paid on home equity loans and lines of credit is tax-deductible if the funds are used to buy, build or substantially improve the home of the taxpayer who is securing the loan.
*Please check with your tax advisor about any tax deductions.
Competitive rates: At SeaComm, you can enjoy rates as low as Prime* on your HELOC. SeaComm members also have access to life and disability insurance payment protection, as well as no closing cost options.
*The rate may vary annually or quarterly based on the product selected and will be based on the highest Prime Rate as published in the Wall Street Journal on the last day of each month, effective the following day.