If you have equity in your home and need to borrow money, a home equity line of credit (HELOC) is an excellent alternative to higher-interest-rate consumer loans and credit cards.
There are several smart, effective ways to use your HELOC to fund and purchase the things that you need at a competitively low interest rate:
If you’re thinking about remodeling your kitchen, replacing appliances or putting new siding on your house, a HELOC is a great way to pay for these big-ticket expenses.
Family trips can cost thousands of dollars, and funding these vacations with a high interest credit card can make it even more expensive. A HELOC can alleviate the stress of having to use a credit card or dipping into your savings account.
Need help paying for college? Whether you’re considering going back to school or you need to fund your child’s education, a HELOC can help fund any educational costs at a lower interest rate than many financial aid packages from other financial institutions.
The need for larger amounts of money can pop up at any time – weddings, births, accidents – which can put a strain on a family budget. A HELOC can help fund these types of expenses when and where they might be needed.
How does a HELOC work? Qualified applicants receive approval for a specific amount of credit.* This credit limit is the maximum amount that the individual can borrow at any one time under the plan and is figured by taking a percentage of the applicant’s home value and subtracting the balance owed on the existing mortgage.
We’ll also look at your income, debts and other financial obligations as well as your credit history when determining the amount of your approved line. A HELOC approval establishes revolving credit in which your home serves as collateral.
For more information about Park Bank’s HELOC program, talk to your personal banker or visit any of our 11 convenient locations.
*Subject to credit approval.