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Smart Uses for a Home Equity Line of Credit

Do I need a home equity line of credit
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Consider tapping into the equity you have in your home for home improvement projects to maintain — or even increase — the value of your home.

Smart ways to use your HELOC

Tapping into a home equity line of credit can be a great way to access funds using your home as collateral. Interest rates are generally less than a typical credit card. Unlike a personal loan, a HELOC gives you the ability to access money when you need it, keeping your total interest paid even lower. A HELOC can also be a good alternative to a cash-out refinance if your current mortgage rate is lower than today's rates — or if you need to access the money promptly.

Some good uses of a HELOC are home repairs that you couldn't otherwise afford and home improvements, both of which help to maintain — or even increase — the value of your home. The interest paid on a HELOC may be tax deductible if it's used to substantially improve the home that is serving as collateral1. (As always, consult with a tax professional.)

Other smart uses for a HELOC include college tuition, which can help improve future earning power for you or your children, or unexpected medical costs, which are necessary and unavoidable.

In some cases, a HELOC can be a great way to consolidate high-interest consumer debt. However, if you would use this freed-up credit to buy more and increase your debt, a HELOC may not be the right choice.

If you'd like more information about how a HELOC works and whether or not it's the right choice for you, stop by your local Synovus branch to talk with a banker.

Learn more about a HELOC with Synovus

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.

  1. Interest on Home Equity Loans Often Still Deductible Under New Law, IRS.gov, accessed March 4, 2019. Back