When you invest in a home, you’re giving yourself and your family a sense of stability and security. Buying a house can also enhance your wealth over time. That’s because a home’s value tends to appreciate over the long term, allowing homeowners a unique opportunity to leverage their equity to finance a variety of life’s larger expenses. Whether renovating your kitchen, updating a bathroom, enhancing your property with vinyl siding, funding tuition expenses, or even indulging in a dream vacation, a Home Equity Line of Credit (HELOC) can help make your aspirations a reality.
Understanding HELOC:
You might wonder, “How can I access the money tied up in my home’s value?” A Home Equity Line of Credit, or HELOC, may be the answer. Let’s dive into the basics before exploring the benefits of a HELOC.
Home equity is calculated by taking the appraised value of your home minus any liens you may have, such as your mortgage. Like a credit card, a HELOC offers revolving credit, using your home as collateral. However, unlike credit cards, a HELOC typically boasts lower interest rates, making it a cost-effective financing option.
With a HELOC, you can access a specific credit amount through advances, often facilitated by writing checks. This flexibility allows you to borrow as needed, repay without penalties, and access funds again in the future.
Is HELOC Right for You?
If you’re planning major expenses such as a home renovation, appliance purchase, or debt consolidation, a HELOC might be the ideal financial tool. HELOCs feature variable interest rates linked to The Wall Street Journal prime rate, providing financial flexibility and convenience.
Here’s what BayCoast Bank’s HELOC offers:
- Typically, no closing costs
- No repayment penalties
- Interest-only payments during the draw period
- Applicable to primary and second homes in MA, RI, and CT
Adding Value to Your Home:
Renovations can significantly enhance your home’s value, especially projects like upgrading garage doors, siding, kitchens, or decks. Prioritize research to ensure your chosen renovations align with your goals and financial strategy.
Take the Next Step with BayCoast Bank:
Exciting news! BayCoast Bank offers an introductory rate for the first 24 months on our HELOC!* Additionally, enjoy no application fees, generally no closing costs, and borrow up to 80% of your property’s value.
Ready to explore your options?
Our experienced lending professionals are here to assist you every step of the way. Visit our local branches or call us at 508-678-7641 to get started. You can also apply conveniently online.
HELOCs have a rate floor and minimum Annual Percentage Rate (APR) of 5.00% and a maximum APR of 18.00% and are available for 1-4 family owner-occupied properties with a combined loan-to-value ratio of 80% or less. If the credit line or loan amount exceeds $250,000 or an online value is unavailable, a certified property appraisal (to be paid by the applicant) may be required. Hazard insurance is required, and flood insurance may be required. Offer available for 1-4 family owner-occupied properties with a combined loan-to-value ratio of 80% or less as determined by an online statistical appraisal acceptable to the Lender. The minimum loan amount is $5,000. A certified property appraisal may be required if the loan amount exceeds $250,000 or an online value is unavailable. No annual fee. Ask us for current interest rate information. All loans are subject to credit approval, and other restrictions may apply. Program guidelines may change without notice. BayCoast Bank NMLS #403238.
*Introductory Annual Percentage Rate (APR) is fixed for the first 24 months (Prime +.25% thereafter) and available with automatic BayCoast Bank checking account payment. Variable APR is based on The Wall Street Journal Prime Rate (“Prime”) plus a margin and is subject to change. The rate floor and minimum APR is 5.00%, and the maximum APR is 18.00%. 10-year draw period followed by a 10-year repayment period. Following the introductory rate period, monthly payments would be variable based on the APR and the outstanding principal balance.
