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.