Feb 10, 2021 / Home Equity

3 Smart Ways to Use Your HELOC

A Home Equity Line of Credit (HELOC) is one of the most flexible ways to borrow money. You can keep your line of credit at the ready as a financial safety net and advance funds to have cash on hand whenever it’s most convenient for you. So, it makes sense that how you use your HELOC is incredibly flexible too. Here are three smart ways to use your home’s hard-earned equity.

1. Consolidate Debt

You should always weigh the pros and cons of secured and unsecured debt, but if you have one or more high interest loans, you can probably save money (and hassle) by paying them off with a HELOC. A Utah First HELOC gives you the advantage of switching between fixed and variable interest rates at any time, so you can lock in a low rate to pay off your debts. Plus, any funds you advance in February and March of 2021 will have a fixed interest rate of 1.99% until April 1, 2022.

2. Home Improvement

Because a HELOC taps into your home’s equity, one of the smartest ways to use a HELOC is to make home improvements and repairs, or complete projects around your house that will help to increase its value. If you’ve been spending more than enough time in your home over the past year to notice all the little projects that need to be completed, now is the time to finally fix that fence, put in a new patio, or complete your home construction project. With a 1.99% fixed rate on HELOC funds advanced in February and March, you won’t find a more affordable way to improve your home’s appeal and value.

3. The Best Use for You

How you use your HELOC funds is completely up to you. If you have an upcoming expense and you need an affordable, flexible way to borrow money, now is the perfect time to apply for and/or access your existing HELOC funds to pay for a dream wedding, tuition or education expenses, a family vacation (hopefully somewhere warm), surprise/emergency expenses, or tax payments.

The best use of your HELOC is whatever works best for you. And to get a great 1.99% fixed rate until April 1, 2022, the best time to access your HELOC funds is now. To learn more about the advantages of a Utah First HELOC (including no annual fees or origination costs and loan interest that may be tax-deductible) call one of our helpful loan specialists or apply online today.