Is HELOC the right choice for your needs?

A HELOC is similar to a credit card. You have the fund available and can use them at any time. The difference is that in case of missed payments, your home is the guarantee for the loan. The interest traits tend to be flexible, as they depend on the economy.  Besides, there are specific fees. 

When should you get HELOC?

In which cases it is justified to take HELOC? Financing home improvements that increase the value of your home is a smart decision. Also, you can use it during emergencies when you need to get low-interest rates. However, make sure that you can pay it off in the next period. If you fail to do so, you can lose your home due to foreclosure. 

When should you avoid a HELOC? There are specific situations when this is a bad idea. In this post, we cover this subject and make it clear for you. 

Kristina

Leave a Reply

Your email address will not be published. Required fields are marked *

Next Post

In which situations you should avoid HELOC?

Fri Dec 25 , 2020
When you pay down the mortgage, you get more equity over your home. This leaves you enough space to get HELOC. In some cases, it is better to avoid this crediting type and go for alternatives. These are the situations in which it is better to avoid it. When should […]