As the holidays approach, adulting takes on a new meaning. Gone are the days of asking for video games, dolls, and new CDs (Millennials, we’re talking to you!). Now, you’re looking for practical gifts like a new fridge or a dishwasher that doesn’t squeal when it runs.

And as you cozy up at home, it’s the perfect time to start brainstorming home improvement ideas for the New Year. Whether you’re dreaming of a bathroom remodel, a new patio for summer, or a complete kitchen renovation, a Home Equity Line of Credit (HELOC) could be the perfect way to fund your next project.

What is a home equity line of credit or HELOC?

A HELOC is a type of home loan that allows home owners to borrow against the equity they have built up in their home. A HELOC provides a revolving line of credit, similar to a credit card, which you can draw from as needed up to a certain limit.

Why a HELOC is the Gift that Keeps on Giving

One of the best things about investing in your home is that it’s not just for you now – it can increase the value of your home. Whether you plan to be in this property for 3-5 years or it’s your forever home, making strategic improvements can boost its value.

Benefits of Using a HELOC for Home Improvements

• You only pay interest on what you borrow, which leads to more savings over time.
• A revolving line of credit allows for flexible access to funds without reapplying for a new loan, so you can access funds multiple times without reapplying!
• HELOC interest rates are typically much lower than credit cards or personal loans, meaning you can save money on interest while saving the rest for those new floors, countertops, or energy-efficient windows.

Start Planning your Home Improvement Projects Today

Make your list and check it twice. Get ready to start the new year with a HELOC to finance those improvements in a manageable and cost-effective way.