A Home Equity Line of Credit (HELOC) has unlimited benefits and uses. As a financial resource, a HELOC is based on the equity in your home. Equity is defined as the value of your property minus the loan balance; for example, your property value is $500,000 and your mortgage balance is $200,000 so you have an equity value of $300,000. A HELOC is a great option for debt consolidation, tuition and college expenses, upgrades or repairs to your home, auto repairs, or even a dream vacation. To get a better understanding of what a HELOC is and what it can be used for, the Making Money Personal podcast team interviewed one of Triangle’s Mortgage Originators, Ryan Campbell.  

In this episode, Ryan mentions the versatility of a HELOC and adds, ‘it is a great option for a safety net in case of unforeseen emergencies. You can think of it as a spare tire on your car—no one has ever complained about having it when their tire goes flat. I’m a homeowner, and over the past three years, I have had a water heater and a furnace both break. Having a line of credit, like our HELOC, at my disposal means it’s a quick and easy way to fix something and get your home back again.

When asked about the differences between a HELOC and home improvement loan, Ryan explains, ‘the HELOC has almost unlimited uses, whereas a Home Improvement loan is a niche product; it has to be used only for home repairs. To access the funds with a home improvement loan, you need to have a work order or an invoice for the work.’

To learn more about HELOCs, listen to this episode below. Join our community by subscribing on your favorite podcast app.