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Pros And Cons Of A Home Equity Line Of Credit (HELOC)

Savings Corner

If you qualify for the best rates, a HELOC can be a less expensive way to consolidate debt or finance a home renovation. Possible tax-deductible interest Even after the Tax Cuts and Jobs Act of 2017, you can still deduct interest paid on a HELOC if you use the money for home renovations. This helps keep your payments manageable.

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HELOC Vs Home Equity Loan: How Do They Work?

Savings Corner

Many borrowers use them to pay for major home repairs or renovations, like finishing a basement , remodeling a kitchen or updating a bathroom. Of course, all this home equity borrowing is made possible by the record-setting rise in home prices since the start of the pandemic, which has increased the value of homeowners’ equity stakes.

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