If I was ever going to get that house addition started, I knew that I had to look at mortgage refinance options and as it turns out, the best product for me was a HELOC home loan. I’m really happy with my decision. I didn’t want to take out a 2nd mortgage for this project and the home equity line of credit (HELOC) provided me with the flexibility I really needed. The HELOC home loan allowed me to pull the money out as I needed it, which was really great because I wasn’t sure how long the project would really take.
HELOC home loan terms
The true advantage to this type of home loan product is the flexibility that is built in to the loan. For my remodel project this flexibility was great. Instead of receiving all of the funds from the loan in one big chunk, I was able to withdraw the money as I need it to pay contractors or order supplies. And, I only had to pay interest during this ten year draw period! A 2nd mortgage would have had me paying back the loan immediately. At the end of the draw period I can start repaying the loan or I can refinance into a fixed rate loan. A standard HELOC has a variable rate for the repayment period.
HELOC home loan uses
I used my HELOC home loan for a remodel project but there are a lot of reasons to consider this type of loan. It is perfect for paying college tuition or paying off all of those high interest credit cards and car loans that are holding you back from moving forward financially. Depending on how things are structured, there may be tax advantages as well. My HELOC home loan really came through for me and my remodeling project and I’m very happy I chose that route.