A Home Equity Line of Credit (HELOC) is one of the lowest-cost sources of funding available to homeowners. Unlike a loan, which provides a lump sum of funds and a fixed interest rate, a home equity line of credit is a revolving credit line. It allows the borrower to take out money against the credit line up to a preset limit, make payments, and then take money out again as needed. The rate is variable.
With interest rates among the lowest in recent history, securing a HELOC may be a good way for homeowners to reach any number of personal or financial goals. Homeowners regularly use a HELOC to:
- Make home improvements
- Pay tuition
- Consolidate debt
- Set aside emergency cash
- Start a business
- Take a vacation
Beginning spring 2021, GRB is offering a HELOC special with a low introductory rate and flexible terms.
There are many factors to consider when deciding whether a home equity line of credit is a good borrowing option for you: think about how you will use the money, what might happen to interest rates, your long-term financial plans, and your tolerance for risk with the HELOC’s fluctuating rates.
Contact a GRB Personal Banker to discuss your goals and how a HELOC may be part of the solution.