8 Ways to Use a HELOC

8 Ways to Use a HELOC

October 12, 2021
by Team SESLOC

Tackle your to-do list with your available home equity line of credit — you can borrow up to your maximum credit limit, when you need it, as you need it. It’s as simple as making a transfer in Online Banking!

Your HELOC provides more flexibility to support your goals than other loan options due to the low adjustable rate, no minimum advance requirements, no prepayment penalty, and flexible repayment terms — during the initial 10-year draw period your minimum payments are interest-only, followed by a 15-year repayment period to cover any outstanding balance.* Plus, the interest paid on your HELOC may be tax-deductible if used for certain purposes (consult your tax advisor for more information).

Here’s how you can use the cash from the equity in your home:

1. Create Your Dream Home

Unlock your dream home by renovating an old bathroom or kitchen, upgrading appliances or furniture, or overhauling your landscaping. Whether you like DIY or will rely on professionals, major projects like these are costly, and your HELOC can help you see it through start to finish. Improving your home can actually increase the equity, and some projects — like converting to energy-efficient appliances or drought-tolerant landscaping — can help save you money in the long run.

2. Debt Consolidation

If you’re trying to wipe out your debt, tapping into your home’s equity might be an option worth exploring. The interest rate on your HELOC may be lower than those of your other loans. If so, you can use your HELOC to simplify your payments and reduce interest costs.

3. Unplanned Expenses

Enjoy peace of mind when you have readily available funds for emergencies. Whether you have a roof leak or termites, you’re prepared to handle payments at a moment’s notice.

4. Medical Expenses

Medical expenses can be overwhelming, especially for surgeries and long-term illnesses. Even with insurance, you might need assistance covering your deductible. Your HELOC can help.

5. Long-term Care

If you have a spouse or relative needing long-term care, the flexibility to draw only what you need is well-suited to pay for these costs since you don’t know how long you will need the funds.

6. College Education

Headed back to school, or sending your children (or grandchildren) off? Borrow from yourself to pay tuition and fees.

7. Down Payment on a Second Home

If you plan to purchase a new home but need the proceeds from the sale of your current home to make a down payment, then a HELOC may be a good alternative.

8. Life Goals

Funding your dream vacation or dream wedding with your HELOC isn’t ideal because your home is your collateral. But the flexibility of your HELOC can be a valuable tool in planning these events, allowing you to quickly pull funds to confirm vendors or snag plane tickets.

Need help enrolling in Online Banking so you can quickly access your HELOC funds? Check out this handy guide to help you get started.


* APR (Annual Percentage Rate) is a variable rate indexed to the Wall Street Journal Prime rate. Rate may increase or decrease during the loan term based on corresponding changes in the Prime Rate. Your rate is based on your credit score. The floor rate is 4% APR; your rate will never exceed 18% APR. Your minimum monthly payment during the draw period will equal the finance charges (interest) that accrued on the outstanding balance during the preceding month. Your minimum monthly payment during the repayment period (never exceed 15 years) will be set to repay the outstanding balance, at the prevailing annual percentage rate, within the repayment period. Your payment will change if the annual percentage rate increases or decreases. Your payment will never be less than the smaller of $50, or the full amount that you owe.