When unexpected expenses hit, it’s natural to wonder: Is tapping into my home’s equity a smart backup plan?
Jaime Schmidt, a loan officer on our Direct Lending team, recently spoke to Bankrate on whether a Home Equity Line of Credit (HELOC) makes sense as an emergency fund. As Jamie explained, “many borrowers open a HELOC and never use it. They just keep it in case an emergency or unexpected expense comes up, and they don’t want to deplete their cash on hand.”
A HELOC can give homeowners added peace of mind – a flexible line of credit that’s there if or when you need it. Some people set up a HELOC to handle surprise medical bills, major car repairs, or even short-term gaps in income. Others use it for planned expenses like home renovations or education costs, knowing they’ll have manageable repayment terms with lower interest rates than credit cards or personal loans.
But is it the right move for everyone? In the article, Jamie helps to break down:
- The biggest pros and cons of using a HELOC for emergencies
- Who’s best suited for this kind of financial safety net
- Tips on finding the right HELOC to serve as your reserve
If you’ve ever thought about using your home’s equity as a financial cushion, or just want to understand how a HELOC really works, check out the full article on Bankrate. And if you’d like help exploring ways to access your equity, our Direct Lending team is here to help!
- Call 855-704-3862
- Email DirectLending@MyLoanServicer.com