6 Reasons Why You Should Get a HELOC this Summer

A father and son swim together in their backyard pool financed by a HELOC.

It's finally summer, the season of sunshine, backyard barbecues, and…unavoidable spending! Many homeowners are gearing up for renovations, vacations, and other expenses that come with the warmer months. A great way to navigate these costs smoothly is by using financial tools like Home Equity Line of Credit (HELOC). Keep reading to learn about HELOCs and why they are a great way to manage your summer expenses.

What is a HELOC?

A Home Equity Line of Credit (HELOC) is a loan where you can tap into the value of your home. Picture it like a credit card, but instead of a credit limit or high interest rates, you're borrowing against your home's equity. You can use the money you need and make interest-only payments during a flexible period, typically 5-10 years. Later on, you will start paying back both the borrowed amount and the interest.

HELOCs are handy for covering big expenses, consolidating debt, or handling unexpected costs. And here's a neat perk: using them for home improvements might even score you some tax benefits! If you want to learn more about the basics of HELOCs and how they work, check out our previous article.

Why should I get a HELOC this summer?

A HELOC offers a flexible way to handle your seasonal spending. Here’s why it is a smart choice for your financial needs over the sunny season:

1. Flexible Funding for Home Improvements:

Summer is a prime time for sprucing up your digs with home improvement projects. Whether you are building a new deck, upgrading your landscaping, or revamping your kitchen, a HELOC offers a flexible source of funding. Unlike a home equity loan, which provides a lump sum, a HELOC lets you to dip into your home’s equity as much or as little as you need. This flexibility can be particularly useful for projects that might have varying costs or unexpected expenses.

2. Tax Break? Yes please!

In some cases, the interest you shell out for a HELOC could qualify for a tax deduction, especially if the funds are used for home improvements. While tax laws can be complex and change often, but this potential perk can boost the overall savings of using a HELOC. Be sure to chat with a tax advisor to understand how the current laws affect you.

3. Emergency Fund for Unexpected Expenses:

Summer often brings unexpected expenses, from home repairs to medical emergencies. Having a HELOC in place can provide peace of mind, knowing you have access to funds if needed. This is especially important during storm season when repairs might be necessary to fix damage from severe weather.

4. Add to Your Home's Value:

Think of your HELOC as a golden ticket to upgrade your home! With it, you can install solar panels, remodel your basement, or add that dream master bathroom. These upgrades can increase your home’s market value down the road. This means you’re not just spending money, but potentially increasing your home’s equity and future resale value.

5. Lower Interest Rates Compared to Credit Cards:

Summer activities and travel can quickly add up, and it's tempting to put these charges on a credit card. However, credit cards often come with high-interest rates, which can put a damper on your summer vibes. A HELOC, on the other hand, typically offers lower interest rates because it is backed by your home. This can make it a more budget-friendly way to finance summer vacations, whether you're planning a family trip or a series of weekend getaways.

6. Quick Access to Funds:

Once you have a HELOC set up, tapping into those funds is quick and straightforward. This comes in handy when life throws you curveballs—like grabbing a last-minute vacation deal or repairing that pesky air conditioning system. With quick access to cash, you are ready to tackle any summer surprise that comes your way!

Choosing the Best HELOC at Academy Bank

With summer already upon us and expenses piling up, it's time to consider how a HELOC can be your secret weapon. With the flexibility to cover everything from home improvements to unexpected costs, a HELOC from Academy Bank offers:

  • Fixed introductory rate special for 6 months
  • Borrow up to 85% of your home’s value (conditions and geographic restrictions apply)
  • Low minimum monthly payments
  • Annual fee waived with auto-draft payments
  • Low or no closing costs
  • A lower interest rate than most credit cards
  • Easy access to your funds

Say goodbye to financial stress this summer and hello to worry-free adventures, courtesy of Academy Bank's HELOC options. Get started with a HELOC today!

Member FDIC

Subject to credit approval. Subject to collateral approval. Fees apply. Geographic restrictions apply. Documentation requirements may apply. Consult a tax advisor about tax deductibility.