5 Reasons to Tap into Your Synovus HELOC
With prices rising due to inflation, it may seem like the cost of everything is going up. In addition, there's some concern that inflationary pressure may cause the Federal Reserve to increase interest rates, as is typical when inflation is high — leading to higher monthly payments for people with variable rate home equity lines of credit (HELOC).
While you can't avoid rising prices due to inflation, you can stabilize the interest rate you're paying on your HELOC, if you switch to a Synovus Home Equity Line of Credit (HELOC) with fixed-rate options.
While most HELOCs come with variable interest rates, our 30-year Home Equity Line of Credit (HELOC) has a fixed-rate option. With this option, your interest rate will never change during the repayment period. Even if you already have an existing Total Line of Credit HELOC with Synovus, you can convert to a fixed rate.
How Does a Fixed Rate Option Work?
Most banks have no fixed rate option. By locking in your rate, you can enjoy the peace of mind that comes from knowing in advance the interest rate you will pay during the draw period.
You can take advantage of a fixed rate option whether you're opening a new Synovus HELOC or have an existing Total Line of Credit. Ask your banker about the fixed-rate options and fees for each product.
Once you've converted the balance (or a portion of it) to a fixed rate option, that balance will remain at that fixed rate for the remainder of the term selected.
When everything costs more, a HELOC allows you to affordably use credit and predictably manage increasing costs.
5 Reasons to Tap Your HELOC
A HELOC with a fixed rate option offers a number of benefits. Consider these five reasons to tap into it.
1. Predictably manage increasing costs, with a low interest rate.
The ongoing supply chain shortage, along with historic inflation levels, means that many items are more expensive than usual right now. If you need a new refrigerator, electronic device, or even a home repair, you are likely to find the prices significantly higher than usual.
Rather than paying these high prices with high-interest credit cards, you can access the needed funds through a HELOC.
2. Simplify budgeting.
With credit cards and adjustable rate HELOC, your interest rate can fluctuate regularly. As a result, your payments may rise and fall, making it difficult to budget from month to month. With a fixed rate HELOC, you can plan ahead for the amount you'll need to pay each month.
3. Get a tax deduction for home improvements.
After spending more time at home over the past two years, many homeowners have decided they need new home offices, backyard pools, or other home improvements. When you pay for home improvements with a HELOC, you can get a tax deduction for any interest paid. A HELOC is a perfect tool to create the home you want while getting a break on your tax bill.
4. Pay only for what you've used.
Regardless of the size of your HELOC, you only pay for the amount you've used at any given time. For example, if you have an available $80,000 on your line of credit, but you've only used $20,000, you'll only pay interest on $20,000. As your balance is repaid, the amount on which you'll pay interest will shrink too.
5. Maintain available credit.
As you repay the balance on your HELOC, your available credit line goes back up.
Learn more about HELOC options from Synovus here.
Important Disclosure Information
This content is general in nature and does not constitute legal, tax, accounting, financial or investment advice. You are encouraged to consult with competent legal, tax, accounting, financial or investment professionals based on your specific circumstances. We do not make any warranties as to accuracy or completeness of this information, do not endorse any third-party companies, products, or services described here, and take no liability for your use of this information.
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