Home Equity Line Of Credit

Pros Of A HELOC

One of the biggest positives of a HELOC program is the fact there are no closing costs. A mortgage usually involves closing costs, which means the total cost for the property is actually higher than face value. There are also tax advantages to a HELOC program, including because this is a government-sponsored program, the interest you pay during the payback period is almost always tax deductible. This lowers your overall tax bill and may result in a bigger tax return each year.

Another positive about a HELOC program is the fact there are very low interest rates available. While private loans are available for different projects, these usually come with high interest rates, which can quickly balloon up the total price of the project over time. Perhaps most importantly is the fast available cash it can provide. This can be a huge savior to homeowners in desperate need of capital for extremely important events in life.

Continue reading to reveal the disadvantages of a HELOC.