Pros and cons of using a HELOC

Pros:

• Typically lower interest rates compared to other forms of credit
• Can be used for a variety of purposes, such as home improvement projects, unexpected costs, and educational expenses
• Interest may be tax-deductible (consult with a tax advisor)

Cons:

• Variable interest rates can fluctuate
• You are borrowing against the equity in your home, so you could lose your home if you default on the loan
• There are fees associated with HELOCs

Is a HELOC right for you?

HELOCs can be a good option for homeowners who are looking for a flexible line of credit with potentially lower interest rates. However, it is important to carefully consider the pros and cons before applying for a HELOC. You should also consult with a financial advisor to see if a HELOC is right for your individual financial situation.

Here are some additional things to keep in mind if you are considering a HELOC in NEPA and the Lehigh Valley:

• Home prices have been rising, which means that you may have more equity in your home than you realize. This could make you eligible for a larger HELOC.
• Interest rates can fluctuate.