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Popular Ways to Use a HELOC and Put Your Home's Equity to Work
A Home Equity Line of Credit (HELOC) is a flexible financial tool that allows you to borrow against the equity you’ve built in your home and use the funds as needed. We asked FreedomBank lenders Kelli and Barb to share common ways customers use a HELOC and their advice for using it wisely.
Kelli Mudderman
Assistant Vice President
FreedomBank Waukon
NMLS# 2118494
Barb Shull
Senior Vice President
FreedomBank Waukon
NMLS# 2177411
Kelli Mudderman, Assistant Vice President and lender at FreedomBank in Waukon, shared, “Home improvements are the most common reason customers open a HELOC. Kitchen and bathroom updates are especially popular because they may add value to your home and make it more enjoyable for your family.”
If you're carrying balances on high - interest credit cards or personal loans, consolidating that debt with a HELOC may simplify your payments.
“HELOCs often have competitive rates compared to some other types of credit, and you only pay interest on the funds you use,” advised Barb Shull, Senior Vice President and lender at FreedomBank in Waukon.
From college tuition to continuing education, a HELOC can help cover education - related expenses. The repayment flexibility may make it an option to consider alongside other forms of financing.
Some borrowers choose to use their HELOC to cover milestone events, such as weddings, adoptions, or once - in - a - lifetime vacations. Using available equity may help spread costs over time, but it's important to borrow responsibly.
“The funds are yours to use as you wish, so many people like having a HELOC available as a safety net. Plan ahead for what you can comfortably afford in monthly payments. This access to funds helps with unexpected expenses such as medical bills, car repairs, or replacing a roof,” noted Mudderman.
Shull advised, “Borrow what you need and avoid maxing it out. Minimum payments may be low but paying extra toward principal helps free up your credit limit if new needs arise.”
A HELOC can be a powerful tool for projects, plans, and peace of mind.
All loans subject to credit approval.
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