Heloc: What is it and How can I use it?
Have you ever wondered what a HELOC is? Do you want to know how you can use it? I introduce you to Sidney Powers – banker extraordinaire. She will explain everything you would want to know so, read on.
Well here it is already… 2016 and a LEAP Year too! The decorations are put away, the company has all gone home (hopefully) and you finally get to sit down. However, now you start looking around your house and begin to realize it is looking a little shabby (not as in Chic either). It looks Drab, Carpets and Furniture are worn, Kitchen and Bathrooms are outdated, and you would love to add on a Sunroom, your list is longer than the kid’s Santa gift lists were.
You would love to remodel but that costs money. Savings isn’t where you would like for such a project, as you have been busy paying the mortgage down. You don’t want to use your 401K or Investment money or the Children’s College funds… so you assume you will just have to put this dream off yet another year, UGH!!
STOP, right there, it is possible you don’t have to wait another year! You have lived in your house quite a while now and you have built equity into it; both by paying down the mortgage and by the rise in real estate values in Middle Tennessee. Why not tap into that Equity and let your House work for you for a change? Borrowing against the equity in your home is called a Home Equity Line of Credit, fondly referred to as a “Heloc”.
Using a Heloc is a simple and economic way to make improvements to your home. Just stop by or call your local banker (preferably me) for details about a Heloc; the amount you can borrow and how to pay it back, the interest rates and if there are any fees involved. You should also contact your Tax Preparer or CPA to see if the interest charged would be tax deductible.
The beauty of a Heloc is it is not selective about what you use it for, the possibilities are simply endless. One strong feature of a Heloc is the rates are very low and you have the probability of a tax deduction making this a very cost effective loan. This loan can also be an ideal way to buy an Automobile, use for College Education, a Wedding, a dream Vacation , to have as an Emergency Fund, OR maybe, to start your own Business.
Other little known facts about a Heloc are; You can use it for a Home Renovation Loan to add on that Sunroom you wanted -or- You changed your mind and have decided to sell rather than fix up the house , You found the perfect home to buy but yours is not sold and you really don’t want to lose this house, You can use the Equity in your home for a Bridge Loan to hold you over until the current home is sold –or- Perhaps you are a First or a Second or even a Fourth Time Buyer and you want to buy a new home but your down payment funds are a little short or tied up in investments, You can obtain a Purchase Money Home Equity on your new property to help you with that down payment. Another use for the Equity in your home; Rental Property has become quite the rage right now, you could use that Equity to Purchase Rental Property and get yourself started in a new business as a Landlord.
As you can see, the possibilities really are…. ENDLESS!
Sidney Powers is a Vice President and Branch Manager with The Bank of Nashville, managing the Maryland Farms Office since 2004. She is an experienced Banker and believes in building long term customer relationships and understanding my customer’s needs. Sidney is an involved contributor to the Williamson County Community serving as an active 16 year member of the Williamson Inc. Chamber. She has held several leadership roles including Chairman of the Board of Directors. She is a 5 year member of BNI with the Cool Springs chapter in Franklin. Sidney and her husband Larry have 5 children and soon to be 10 grand children!! They have lived in Tennessee for 17 years and currently live in Spring Hill. They love to garden and travel and are planning a trip to Alaska in 2016. Sidney A. Powers: 615-271-2088 office 615-925-1438 mobile firstname.lastname@example.org
Photo courtesy of hywards via freedigitalphotos.net
Michelle Froedge is a residential Realtor and Principal Broker in the Greater Nashville and Williamson County areas of Tennessee. Wife to Robert, “Mom” to Tyler and Livvie, Auntie to Zelamie, she is a vegetarian and sings in her spare time. Michelle has lived in Nashville and Franklin since 1997 and has been selling homes since 2004.