HELOC

A home equity line of credit (HELOC), or a cash-out refinance may be just what you need for home improvements, to consolidate and pay off other creditors, or go on a special vacation. You can use the equity in your home however you wish...

With a HELOC, you may be able to borrow up to 80% of your homes equity to use as needed, such as for home repairs or updates, or a new addition. The exact loan to value (LTV) limit may depend on your credit score, market condition and other factors. A HELOC can actually be used in any way that you see fit. However, if you are using the funds for expenses that are unrelated to home improvements, the home equity debt may not be tax deductible. If you this is not of concern, and you don't plan to use the debt as a tax write-off, then use the funds at your discretion. For some people that have high interest revolving credit on credit cards, other personal loans, or vehicles, this type of loan is often used to leverage the equity in the home to consolidate debts