HELOC: One solution for life’s planned and unplanned expenses
Flexible financing for college costs, home improvements, and emergency needs
A Home Equity Line of Credit (HELOC) is your all-in-one solution for managing both planned and unforeseen expenses. Whether you are adapting your home to your family’s changing needs or paying for college expenses, a HELOC offers the flexibility and low rates you need to stay financially secure.
When planning for college expenses, a HELOC can cover meal plans, technology, travel, and more. “HELOCs are more affordable and typically have lower interest rates compared to private student loans,” advises Gretchen Hashimura, Senior Member Relationship Consultant at HawaiiUSA Federal Credit Union’s Lihue Branch. “Parents can withdraw funds as needed, rather than borrowing a large lump sum upfront.”
For condo owners and home improvers, a HELOC is invaluable. “It allows homeowners to finance large renovation projects such as kitchen remodels or flooring upgrades without refinancing or using high-interest personal loans,” shares Helen Nguyen, Branch Manager at HawaiiUSA’s Kakaako Financial Center. Life can be hectic, and having access to funds for repairs, emergency bills, or special home assessments will let you breathe easy.
One of the best features of a HELOC is that if you don’t carry a balance, you don’t have to make payments or pay interest. Getting approved for a HELOC is more involved than a credit card, for example, so it’s wise to apply before you need it. Additionally, you may be able to leverage the tax benefits that come with a HELOC.
Gretchen and Helen do offer some words of caution, however.
“A HELOC should not be your first line of defense against emergency expenses,” says Helen. “Maintaining a separate emergency fund is a must. A HELOC can help to supplement your emergency savings if needed.”
“Keep in mind that your home serves as collateral for your HELOC, and failure to repay could result in foreclosure,” reminds Gretchen. “A HELOC is simply a tool and is helpful if you manage it responsibly.”
Get in touch with the HawaiiUSA team today to explore if a HELOC is a wise choice for you.
808.534.4300
