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Young couple and their dog working together on a home remodel, measuring and cutting drywall with tools, preparing to install plasterboard—consider using a Civic HELOC for your next home project.

5 reasons to love a HELOC

2 min read
April 24, 2025
5 reasons to love a HELOC

A home equity line of credit (HELOC) may be just what you need if you:

  • Face major home improvement expenses
  • Need money to cover college
  • Want to pay down high-interest debt

This revolving line of credit allows you to borrow against the equity built up in your home. In other words, the value of your home minus the amount of unpaid mortgage is what you may be able to borrow. Here are five reasons we think you will love a HELOC.

 

1. Get funds for home improvement needs

Think about the word “home” in HELOC. Sometimes a home’s big expenses are unpredictable. Maybe you anticipated replacing only your air conditioning unit, but now you need to add on a new furnace too. Or, perhaps you want to renovate. Your HELOC has your back to help cover those additional costs.

A home equity loan is open-ended, which means you can withdraw the money you need as you need it within a specific time period. You only pay interest on the amount advanced to you.

2. Pay for college

You can use your HELOC as a low-cost alternative to a high-interest student loan.

3. Pay off or consolidate debt

If you have credit cards, outstanding student loan debt or other lines of credit with multiple rates, consider a HELOC to combine all you owe. This way you will have one low monthly payment, and more money in your pocket!

4. Lower rates than other types of loans

HELOC rates are often lower than those on credit cards or personal loans.

5. Interest may be tax deductible

A HELOC is considered a second mortgage, so the interest paid on it may be deductible on itemized tax returns, if the money is used for substantial improvements to your home that add value, prolong its useful life or adapt it to a new use. Talk to your tax advisor for details.

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