Your house is more than a physical structure. It’s your home. It’s where birthdays are celebrated with backyard BBQs, and movies are watched with everyone piled on a comfy sofa, and—more recently—where rooms are pulling double duty to meet the demands of working remotely and everyday life. Deciding to purchase a home was an investment in your life. That’s why it’s important to get the most out of your home and its equity.
As your home’s equity builds up over time, you could tap in and unlock your equity with a Home Equity Line of Credit (HELOC). HELOCs give you the flexibility to use all or a portion of the credit line when you needed it. Here are three ways to maximize your home’s equity.
Invest in your home.
Not all home improvement projects are equal. The key is to find a balance between making your home a place you love to live and choosing projects that will add value to your home. Some projects, like removing walls or adding square footage, could make a significant impact (and are very appealing to buyers—if you’re looking to sell). There are also medium to small projects that could add value too, like landscaping, updating appliances, or repainting the exterior.
Paying off debt is a financial goal that many individuals have. There are several options to consider when achieving this goal, including balance transfers to a credit card, a personal loan, or refinancing your home. Another option is a HELOC. HELOCs typically offer a low rate and higher financed amounts since it’s based on the equity in your home. This means you could consolidate larger debts like credit cards or student loans into a single payment, making it easier to achieve your goal of financial freedom.
A financial emergency could happen at any time. An emergency fund helps make sure you’re financially prepared for a leaky roof or unexpected medical expenses. But what if your emergency fund can’t cover the entire expense? Your HELOC is a great way to access funds in a pinch or help bridge the gap.
When you’re ready, schedule an appointment Yolo Federal Representative to apply for a HELOC so you too can unlock the equity in your home with a HELOC.