Here are a few of the benefits of getting a home equity line of credit.
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Today I’m joined by Liz Fajardo of Comerica Bank to answer a few important questions about home equity lines of credit (HELOC).
Why would anyone want to get a home equity line of credit?
According to Liz, it’s a great product for anyone in need of emergency funds. This way, they’ll be able to access these funds instead of getting a credit card with a higher interest rate. Home equity lines of credit have lower interest rates.
Why get a home equity line of credit instead of refinancing?
By getting a home equity line of credit, you don’t have to touch the rate on your first mortgage, and it’s there to utilize when you need it. If you refinance, you’ll have to touch the rate you have, and given the fact that a lot of rates are great right now, most people don’t want to touch them.
What are typical rates for a home equity line of credit?
Right now, Comerica offers a great promotion with a rate of 2.99% for the first six months. After that, it increases to 5.25%—that’s way better than a credit card!
In what type of situations do people usually get a home equity line of credit?
Many like to use them for debt consolidation so they only have one payment for everything they owe. They’re also handy for those who need to make home repairs. Additionally, as mentioned above, they’re great for anyone who needs an emergency fund. It’s ready for you to use when you need it, but you don’t need to touch it. This means, in addition to not needing to get a credit card with a higher interest rate, you also don’t need to borrow money from a family member or dip into your 401(k).
In summary, home equity lines of credit can benefit all types of homeowners. If you have any more questions about this topic, you can give Liz a call at (562) 590-2588.
As always, if you have any more real estate questions, you can call or email me anytime. I’d love to help you.
