HELOC Pros and Cons Experts Wish You Knew
The Pros of HELOCs
One of the primary advantages of a HELOC is its flexibility. You can borrow as much or as little as you need, and since it's a line of credit, you can access funds over an extended period, typically 10 years, known as the draw period. During this time, you might only need to make interest payments, which can help manage cash flow effectively.
Interest rates on HELOCs are often lower than those on credit cards or personal loans because they are secured by your home. This can lead to significant savings over time, especially if you are using the funds for large expenses like home renovations. Additionally, the interest paid on a HELOC may be tax-deductible if the funds are used for home improvements, providing further financial benefits1.