Home equity lines of credit can be a great way for homeowners to gain quick access to cash for a much-needed home improvement project or other expenses that might arise. A home equity line of credit (or HELOC for short) is a form of credit that you can use for large expenses. The credit is secured by your home, using it as collateral. While that can be a major decision worth careful consideration, a home equity credit line from Fidelity Bank in Leominster, MA comes with some benefits that other types of credit don’t.
Fidelity home equity lines of credit:
- Provide access to larger amounts of money based on the equity in your home
- Replenish available credit as you make monthly payments toward the outstanding balance
- Typically offer significantly lower interest rates compared to credit cards
Our home equity lines of credit work like a credit card, enabling you to access the funds you need, whenever you need them. You can use your money to help pay down high-interest debt, finance your child’s education, or fund home improvement projects to add more space or more features to your existing home.
Home equity lines of credit from Fidelity are highly popular because they are easy to use and flexible. You can access your available funds by simply writing a check, just like a regular checking account – you only pay interest on the amount you withdraw. And that interest you pay may be tax deductible in certain situations.
Of course, you must be a homeowner to qualify for home equity lines of credit because you are borrowing against the available equity in your home and your home is being used as collateral to secure it. In some cases, you can borrow up to 80-95% of your home’s value. HELOC rates are generally low but keep in mind, they are also adjustable and typically tied to prime rate so your monthly payment can increase or decrease over time due to fluctuating interest rates and the amount of money you borrow.
To learn more about a HELOC and if a home equity loan is right for you, contact the credit professionals here at Fidelity Bank.