You’ve likely heard good things about the option of getting a Home Equity Line of Credit (HELOC) to fund the house projects you want to do. There are reasons it’s such a good option to attain funding.
HELOCs are one of the lowest interest rates you can get. While not typically as low as a 30-year mortgage rate, they are many times as low as the prime rate or lower. These rates are still as low as they have EVER been, so it’s a great time to take advantage of it.
Because of the low rate, the payment can be low as well. Many banks have a flexible policy around how your HELOC will be paid back.
Repeating Line of Credit
HELOCs are typically a line of credit where you have a limit and can draw from it, pay it back, draw again, and so on. In addition, you may not have to take the entire amount at once. You can draw as much or as little as you want, at any time. It’s like a credit card for your home projects and many people love that option.
Tax Deductible Interest
You may qualify to have your interest from a HELOC be tax deductible. That has been a benefit for many years over other types of funding.
Keep in mind that it’s an additional payment along with your mortgage, but there aren’t many funding options with so many perks as using a home equity line of credit to remodel your kitchen.
Our designers at Central Cabinetry can help you understand how to have the best kitchen, and the best ways to fund it as well. Contact one of our experts here to get started.
Learn more about everything to do with a kitchen remodel in our Kitchen Remodel Survival Kit: