Why You Should Consider a Home Equity Line of Credit


There is no shortage of benefits to owning your own home. The ability to make upgrades as you wish, knowing your mortgage payment with a fixed-rate loan and of course, building equity. A number of factors can determine your home’s equity, including location, property upgrades and the economy. To determine your home’s equity, you take the difference between the value of your property and the amount of money you still owe on the home. But what can you do with the equity in your home?

Colonial’s Home Equity Line of Credit program, or HELOC, allows you to borrow up to 50 percent of the appraised value of your home. Below are a few reasons to consider a Home Equity Line of Credit.Colonial’s Home Equity Line of Credit program, or HELOC, allows you to borrow up to 50 percent of the appraised value of your home. Below are a few reasons to consider a Home Equity Line of Credit.

Lower Interest Rates

A Home Equity Line of Credit works in many ways like a credit card, but without the high interest rates. If you are in a bind financially, it can take you a long time to recover from high interest credit card debt. A HELOC can be just what you need in case of a financial emergency.

Debt Consolidation

Speaking of high interest credit cards, a HELOC can help consolidate debt so you can begin your path to paying off debt. Instead of having multiple debts, consolidating your debt with a modest interest rate can save you lots of money over time. Having one payment with one due date to remember makes things simple.

Interest May be Tax Deductible

Much like the interest you pay for your mortgage payments, the interest of your HELOC may be tax deductible. There are some rules to be aware of, so speak to your CPA or tax advisor to answer any questions you might have.

Use it How You Wish

Another benefit of a HELOC is the flexibility and freedom to use it however you please. Is it finally time to upgrade your kitchen and appliances? Or maybe you have a child attending college and you could use the extra money to put toward books or tuition. Whatever the need, you will enjoy using your HELOC for whatever you wish. Below we have a few more specifics:

Home Equity Line of Credit – Now offered anywhere in Texas

  • $20,000 – $200,000
  • Max loan-to-value (LTV) = 80% of total liens, line amount cannot exceed 50% of home value
  • 700 minimum FICO credit score
  • No closing costs
  • Rate is WSJ prime floating, adjusting quarterly
  • 10 years interest only, followed by 15 years amortization (25 years)
  • Available for any purpose

Contact Colonial Today

To learn more about how you can utilize the equity in your home, visit GoHeloc.com, or stop by any of our Banking Center locations today. You can also visit GoColonial.com for a comprehensive look at all of the banking, home loan and insurance products we offer.

Bank and mortgage rates and terms subject to change without notice. This is not an offer to extend consumer credit as defined by Section 1026.6 of Regulation Z. All loans subject to underwriting guidelines. Not all applicants will qualify. NMLS 401285.

 

Related Article:

One of the many things that make home equity loans so attractive is their flexibility. Be sure to check out our list of Common Uses for Home Equity Loans.

 

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