Sep 02, 2022 / Home Equity
Everyone knows that a HELOC is a great way to access cash for a home upgrade, a big event, or a big expense like a family vacation. But did you know that your HELOC can come in handy in a few less conventional ways too. Here are 3 outside the box benefits of having a HELOC.
Once approved, your HELOC is a lot like a credit card—it’s a revolving line of credit that you can use (or leave alone) anytime you want. You can access HELOC funds, for example, to pay for projects and pay down your balance with every project you complete. But you can also keep HELOC funds on hand, in case of an emergency or unexpected expense. You just transfer funds from your HELOC account to your checking account using Digital Banking and you can pay for just about any expense that pops up. It can be an affordable way to access extra cash in a flash.
If you have enough equity in your home, you can use a HELOC to pay for a down payment on a second property or investment property, making your offer more competitive and your eventual home loan payment a little lower. With a Utah First HELOC, you also have the option to lock in a fixed interest rate at any time, so you can get a lower rate with a lower monthly payment than you otherwise could with a conventional home loan. In fact, locking in a fixed interest rate is a great way to outsmart market fluctuations to secure funds as an alternative to other variable rate loans.
Because your HELOC is secured by your home, your lender can usually offer a much better interest rate than other types of loans. As long as you understand the risks of taking on secured credit loans (and you have a plan to make payments on time), you can save a lot of money by paying off high interest loans with your HELOC. That includes credit cards, personal loans, even the remainder of your mortgage loan.
Whether you like the luxury of having cash on hand, a fixed interest option, or saving money by paying off other loans, your HELOC can do much more than just home repairs. Visit our website to learn more about the surprising, outside-the-box benefits of having a HELOC.