Use Equity to Warm Your Home for the Holidays

For those homeowners who have paid off a good portion of their home loan, tapping into their home’s equity may be a good option when considering how to finance minor home improvement projects to prepare their home for the holidays. 

Home equity line of credit rates (HELOC rates) currently reside at 4.73%.  This rate is down from nearly 5% just six months ago.  Informa Research Services suggests a few ways to put your home equity to good use this season:

• Repair your roof.  In preparation for the cold, wet weather that usually accompanies the winter months, this may be a good time to invest in repairing leaks and fixing any other damage to your roof.

• Give your fireplace a face-lift.  In addition to creating a warm, festive setting to entertain your family and friends, having a safe, working fireplace and chimney can potentially increase the value of your home.  Be sure to find a reputable inspector and mason to work on your fireplace.

• Consolidate your debt.  The holiday season can also quickly turn into the season of debt, and some use home equity to consolidate this debt.  However, even though your balance may be collecting less interest, it still needs to be paid off and interest is still being charged.  Be forewarned, this is not a permanent fix, but it can help some consumers get caught up on their payments.

With low home equity rates you can use your home equity wisely, your home can treat you to a less stressful holiday season!

Author: Candice Yee - Informa Research Services