If you’ve ever wondered what HELOC FlexLine is or how you can use it, this article is for you. SESLOC’s HELOC FlexLine is our Home Equity Line of Credit which leverages the equity built up in your home to give you more flexibility — you can borrow up to your maximum credit limit, when you need it, as you need it. And when you want more payment certainty, you can lock in a fixed rate on up to five different portions of your balance. Flex when you need it.1 Fix when you want it.2
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.
Interested in opening a HELOC FlexLine? Contact us today – we’re here to help!
*APR = Annual Percentage Rate.
1. APR (Annual Percentage Rate) is a variable rate indexed to the Wall Street Journal Prime rate. Your rate may increase or decrease during the loan term based on corresponding changes in the Prime Rate. APR is based on creditworthiness and CLTV (combined loan to value). Actual APR will be discussed at the time of application. The floor APR is 4%; your APR will never exceed 18%. Your minimum monthly payment during the 10-year 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 20 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.
2. HELOC Flexline: Includes an option to fix the rate on a portion or segment of the outstanding variable rate balance. This may be requested up to five (5) times during the draw period of the account. The minimum requested amount for a fixed rate segment is $5,000. The terms, including the APR and minimum monthly payment on the requested segment, will be fixed until paid off. APR and terms for a fixed rate segment are determined by creditworthiness and CLTV (combined loan to value). Term options include 60 months (5 years), 84 months (7 years), 120 months (10 years), 180 months (15 years) and 240 months (20 years), not to exceed the maturity date of the loan.