If you’re like most homeowners, your home is your biggest financial asset. While you may assume the funds you’ve invested in your home are inaccessible as long as you’re paying off the mortgage, a HELOC (Home Equity Line of Credit) loan allows you to borrow from yourself–and to strategically multiply the value of this asset in the process.
What Is a HELOC Loan?
A HELOC loan gives you access to the funds that you’ve invested in your mortgage without selling your property. The size of your loan depends on how much equity you’ve built, which you can estimate by calculating the difference between what your home is worth and what you still owe on your mortgage.
Unlike other loans for a specific amount of money, a HELOC gives you access to a revolving line of credit over a draw period. Your lender sets a maximum borrowing limit, and then you can withdraw funds up to that amount and only pay interest on what you borrow.
Why HELOC Loans Can Multiply Your Home’s Value
At a time when home prices and interest rates are sky high, investing in your current home could be a more strategic use of your funds than buying a new one. A HELOC loan opens up possibilities for the home improvement projects you’ve always dreamed of, like an expansive deck for hosting or a beautiful fence to keep your pets safe.
By infusing funds from a HELOC into your home, you repurpose the equity you’ve already built to increase the value of your property. In doing so, you’re exponentially increasing the equity of your home and make it an even bigger asset in this seller’s market.
How to Apply for a HELOC Loan
If you’d like to pursue a HELOC loan, ask your current mortgage company, bank, and other lenders to see what they offer. Compare interest rates, fees, borrowing limits, draw periods, and repayment period lengths.
While you’re researching, don’t wait to reach out to Integrous Fences and Decks to start dreaming about the outdoor living projects you would love to complete once the loan is approved. Getting estimates for fence, deck, and other outdoor projects can help you make wise decisions about which HELOC loan to select and what home improvement projects to pursue.
Visit Integrous’ showroom or call us at 610-430-0743 to set up a free consultation.