Be at home with a HELOC (Home Equity Line of Credit).

Chances are, you’re sitting on cash. (No, we’re not talking about the loose change hiding under your sofa cushions.) It’s the equity in your home that you can access for important expenses through a Belmont Savings Bank Home Equity Line of Credit (HELOC). While no one would suggest you dig into these funds to pay for daily expenses or to make frivolous purchases, there are times when taking out a HELOC makes sense. Here are five of them:


1. Paying for college. The good news: your son or daughter gets into the school of his or her dreams. The bad news: there’s no scholarship money and your family earns too much to be eligible for financial aid. What can you do? Taking out a HELOC for your child’s education is one way to make that college dream a reality.


2. Home renovations. Making the right improvements and keeping your home up to date can be important when it comes time to sell. A new kitchen or addition can pay for itself in the long run. Not to mention, you get to enjoy it while you’re there. Before you lift a hammer though, do your homework and find out which investments reap the biggest rewards.


3. Consolidating debt. We’re coming out of one of the roughest financial stretches in recent memory. As things start to improve, now is the time to take back control. Using HELOC funds to pay off high interest creditors and eliminate multiple payments can be a great way to get a handle on your finances.


4. Big ticket items. Why would you use a HELOC to pay for cars, boats, trips? Because unlike auto and other personal loans, the interest on your home equity line may be tax deductible. *


5. Emergencies. If recent economic times have taught us one thing, it’s that it makes sense to be prepared. Having a HELOC in place ahead of time can offer great peace of mind as protection against unexpected medical emergencies, unemployment, and other hardships. Remember, you don’t pay interest until you actually use the funds.


Everyone’s financial journey is different. For many, a HELOC provides one more vehicle to help along the way to attaining your life’s goals. Talk it over with your financial planner, or come talk with Belmont Savings representative. We’ll help you see if a Home Equity Line of Credit is right for you.



*This article is not tax advice. Please consult a tax advisor for tax information.