Some may use a HELOC for a car loan, personal expenses or as a cash influx for a business. While these uses might make sense in select cases, there are more efficient ways to leverage a HELOC to maximize its value.
For example, reinvesting proceeds in your home can increase the property value, which can net you a profit if you ever put it on the market. A personal purchase or a car doesn't add any wealth, as the item will only depreciate. Remodeling or renovating a home can add value that makes a HELOC worthwhile, whether at resale time or throughout your lifetime, by having a more comfortable and modern home. It's also a highly tax-advantageous use.
Saving money in the long term is a goal for many, and high-interest debts may complicate progress toward that. Paying for college is another large life expense that can strain bank accounts. A HELOC, which offers low interest rates and flexible, multiyear draw periods, can help meet homeowner needs in such cases.
Download our infographic "The 3 Most Efficient Ways to Use a HELOC" or contact the experts at Comerica Bank today for more.