Your home is more than just a place to live, it’s an asset that can help you achieve financial flexibility. A Home Equity Line of Credit (HELOC) allows you to borrow against your home's equity, giving you access to funds when you need them. If you’re looking for a smart way to finance home improvements, consolidate debt, or cover unexpected expenses, a HELOC could be the brighter banking solution for you.
What is a HELOC, and how does it work?
A HELOC is a revolving line of credit, similar to a credit card, but secured by your home. The amount you can borrow is based on your home’s equity. Equity is the difference between the current value of your home and the balance left on your mortgage. For example, if your home is worth $300,000 and you owe $150,000 on your mortgage, you may be able to borrow up to $150,000.
Once you’ve applied and been approved, you can withdraw as needed, pay down the balance, and borrow again. With a HELOC, you only pay interest on what you use, not the full credit limit. It works like a revolving line of credit. Therefore, as you pay off what you owe, that money then becomes available to borrow again.
What are the benefits of a HELOC?
1. Flexible Access to Funds
A benefit of a HELOC is the flexibility it offers. Whether you're planning a home renovation, paying for college tuition, or consolidating debt, a HELOC can give you access to cash when you need it. You can borrow as much or as little as you need, up to your credit limit!
2. Lower Interest Rates
Since a HELOC is secured by your home, interest rates tend to be lower than those of unsecured loans or credit cards. This can make it a more affordable option when you need to borrow a significant amount of money.
At Jovia, you can take advantage of a low introductory rate‡ for the first twelve months and a competitively low rate following the introductory period.
Check out Jovia’s HELOC rates!
3. Potential Tax Deductions
In some cases, interest paid on a HELOC may be tax-deductible if the funds are used for home improvements. It’s always a good idea to consult a tax professional to see if this applies to your situation.
4. Debt Consolidation
High-interest debt can be overwhelming. A HELOC allows you to consolidate multiple debts into a single, lower-interest payment. This can help save you money and simplify your finances.
Is a HELOC Right for You?
A Home Equity Line of Credit can be a powerful tool when used responsibly. Before applying, consider how you plan to use the funds and ensure you can manage the payments comfortably.
At Jovia, we’re here to make brighter banking a reality. Speak with a Home Equity Specialist to explore your options, understand the terms, and find the best solution for your financial needs. Contact a Home Equity Specialist today!
‡ APR = Annual Percentage Rate. The terms and conditions are subject to change at any time without notice. Introductory rate is fixed for the first twelve (12) months and begins on the date of account opening. After the introductory period ends, all remaining balances will automatically convert to the variable APR per terms of the HELOC agreement. The variable APR is based on Prime plus a margin up to 2.5% and will vary with Prime. The maximum APR will not exceed 18%. Minimum APR cannot be lower than 3.25%. Not all applicants may be approved.