Use of HELOCs are plenty

The equity in your home has built nicely to a point where you’re not underwater, and you may be thinking about obtaining a Home Equity Line of Credit. The opportunities with what you can do with a HELOC are plentiful but there’s actually only a few things that are worth tapping into your home’s equity. Here’s a few things to consider:

Home improvement

If you’ve been in your home for a few years, it may be time to address those nagging home improvement issues that won’t go away until you do something. Maybe your roof needs to be redone to keep the home cooler during the summer and drier in the winter. Perhaps you need a new stove or refrigerator, maybe a whole new kitchen. Whatever the issue, these types of home improvements typically add value back into your home while it improves your quality of life.

Credit card debt payoff

If you are a homeowner juggling multiple credit card debt, using your home’s equity to consolidate your credit card bills can be a smart financial tool, if you don’t run up those credit card balances again. A HELOC will allow you to have one single monthly payment at what will likely be a lower interest rate, giving you more financial flexibility.

Purchase an investment property

Using a HELOC to purchase an investment property that can generate income overtime by renting or reselling can be a profitable endeavor, if managed wisely. If you’re a do-it-yourselfer, you can purchase a fixer-upper, renovate it and sell it for a higher price. The tight housing market makes this possible, and summer is one of the best times to be in the market.

Recreational vehicles

You’ve always wanted a boat, jet ski or ATV. While your equity will allow you to purchase these recreational vehicles, it may not be the best use of such resources. Keep in mind there are other expenses associated with these items than just the initial cost. Each of these vehicles need to be fueled, maintained and housed to keep them in peak condition. Is that really worth using your home’s equity?

Want to learn more about HELOCs? How about buying a new home? Our knowledgeable mortgage loan consultants can help determine the right home loan product for you. Visit our Home Loan Center at One Travis Way in Vacaville or our Real Estate Center at

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