How a HELOC can give you more flexibility

With the current economic conditions, you may find it difficult to meet the increasing demands of high property taxes, increased cost of living, high interest debts, and excessive medical expenses.

Or maybe you have been dreaming of a new kitchen, a well-deserved trip or home improvements... but you don't have the money right now. The struggle is real.

As a homeowner, you have options. Many homeowners have seen their homes’ values increase tremendously over the past couple of years, which provides an opportunity for them to tap into their home’s equity through a Home Equity Line of Credit (HELOC).

Equity is the difference between the current value of your home and the amount you still owe on your mortgage. A HELOC is a loan that allows you to borrow against the equity in your home. A HELOC works similarly to a credit card, where there is a limit on the amount you can borrow, and you only pay interest on the amount you use. The loan is secured by your home, which means that the lender can foreclose on your home if you default on the loan.

What are the key advantages for you?

  • Flexibility: A HELOC is a flexible loan that allows you to use the funds for a variety of purposes. You can use the money to pay for home improvements, education expenses, medical bills, or even to consolidate high interest debt.
  • Lower interest rates: The interest rate on a HELOC is typically lower than credit card or personal loan debts because HELOCs are secured by your home, which reduces the risk to lenders and results in lower interest rates to borrowers. This can make it an attractive option if you're looking to consolidate debt or finance a large purchase.
  • Access to funds: With a HELOC, you have access to a revolving line of credit, which means that you can borrow and repay the funds as needed. This gives you the flexibility to use the money when you need it, without having to go through the loan application process each time.
  • Tax benefits: The interest you pay on a HELOC may be tax-deductible, which reduces your income tax liability. However, it's important to speak with a tax professional to understand the specific rules and requirements.

In summary, a HELOC is a flexible loan that allows you to borrow against the equity in your home. It offers lower interest rates, access to funds, and tax benefits. However, it's important to understand the risks and responsibilities that come with borrowing against your home, and to work with a trusted mortgage broker to find the best loan for your needs.

Reach out to the Surefire Mortgages team to schedule a free consultation. We’ll work with you to develop an action plan to meet your goals.

* Specific loan program availability and requirements may vary. Please get in touch with the mortgage advisor for more information.