Common Home Equity Uses
There are many wise and responsible ways to use your BB&T Home Equity Loan or Line of Credit.
Consolidating your high-interest loans or credit card debt into a home equity loan or line of credit can simplify your life and save you money too. The interest rate on a home equity loan or line of credit is typically much lower than on credit cards or other loans, and making a single smaller monthly payment means having more money to save, invest, or use to reduce your debt more quickly. As you repay your home equity line or loan, your credit profile may also improve.
Making home improvements is one way to protect or enhance the value of your investment. Renovating a kitchen or bathroom or building an addition to your existing structure can raise the market value significantly. However as you consider making improvements, be sure the size and style remain consistent with the other homes in your neighborhood. While recarpeting, painting, or general refurbishing won’t increase the market value of your home, these and other cosmetic improvements will make your home more pleasing for you and your family and will provide greater curb appeal if you do decide to sell. Finally, don’t forget to update your insurance after you’ve added value to your home.
Whether you are considering going back to school, or your children or grandchildren are starting college, using your home equity loan or line of credit to pay for the rising cost of education is an important investment in the future. Since there are no restrictions on how you use the funds, you can pay for tuition, books, a computer, room and board, or any other expenses.
Other Major Purchases
|Most Common Uses of Home Equity|
Debt consolidation, home improvement, and education are among the most common uses of home equity loans or lines of credit funds. However, there are other smart uses for the financially savvy homeowner. Reducing energy costs by installing energy efficient appliances or buying a fuel-efficient car, making major purchases such as lawn or garden equipment, paying for medical expenses and starting or breathing life into a new business are other applications that often make good financial sense. Uses are as varied as the individuals who apply for these credit options.
For low interest rates and potential tax savings, home equity loans and lines of credit offer financial benefits unmatched by most credit products.