
Luciano Giustini
Mortgage Agent
416-807-5630 | Email
Our Blog
Making Dreams A Reality!
Quick Links
Latest News
Blog
Blog Post Categories
Announcements (1)Financing (2)
First Time Home Buyers (9)
Home Ownership (5)
Miscellaneous (14)
Mortgages (3)
Real Estate (8)
Blog Post Archives
January 2022 (1)April 2020 (1)
March 2020 (2)
February 2020 (2)
January 2020 (2)
December 2019 (1)
November 2019 (2)
October 2019 (2)
September 2019 (2)
August 2019 (2)
July 2019 (2)
June 2019 (2)
May 2019 (2)
April 2019 (2)
March 2019 (2)
February 2019 (2)
January 2019 (2)
December 2018 (2)
November 2018 (2)
October 2018 (2)
September 2018 (2)
August 2018 (1)
October 2011 (2)

For homeowners across the globe, home equity lines of credit (HELOCs) have become a handy way of tapping into the value of their homes. However, when borrowing money against your home, it is always a good idea to be a little cautious about what you spend it on. As such, it usually isn't a good idea to use a HELOC to pay for a vacation or buy a new TV.
So then, what should homeowners use HELOCs for?
Home Improvements
Using a HELOC to make improvements to your home can be a great way to increase the property's value. Whether you want to install a pool, renovate the kitchen, or add a bathroom, tapping into your home's equity is an easy and efficient way to finance the project. In some cases, you might even find that you have more equity in your home after the project has been completed than you did before you used your HELOC.
Refinancing Debt
If you have a large amount of high-interest debt, using a HELOC can be a great way of enjoying a lower interest rate. Many forms of debt, such as personal loans and credit card debt, are unsecured. As such, they can come with interest rates as high as 20%. However, since your HELOC is secured by your house, you are likely to be able to receive a much lower interest rate. Depending on your circumstances, refinancing high-interest loans into a HELOC can potentially save you thousands of dollars.
Paying For Education
If you are planning on sending your child off to college soon, or are even thinking about going back yourself, a HELOC might just be a viable way to pay for the tuition costs. Since HELOC interest rates are usually fairly low, they can sometimes compare favorably to traditional college loans. Of course, it is a good idea to closely compare your options before committing to either one.
In Conclusion
Though HELOCs can be an excellent way to access the equity in your home, it is always important to be careful about how you spend your money. By choosing to use your HELOC for one of the uses outlined in this article, you can ensure that your home's equity is being well spent.