A HELOC for the Holidays

November 13, 2015 | Vince Nowicki

Consider me a modern-day Paul Revere: The in-laws are coming! The in-laws are coming!

As the holidays rapidly approach, and as you take stock of all the things still left undone, you may be getting the feeling you’re a little overwhelmed. Have you considered a Home Equity Line of Credit to help pay for some of those important projects? A Home Equity Line of Credit, or “HELOC,” is a great way to fund multiple projects at the same time. The funds can be available all at once or in smaller increments. Also, your borrowing power can be connected to a MasterCard, which makes retail purchases smoother than Uncle Dave’s kicked-up eggnog. As if those aren’t reason enough, as an added bonus, your tax preparer may tell you that the interest you’ve paid on your HELOC is tax deductible. Speaking of saving money, a HELOC can be a great way to consolidate numerous, higher interest rate loans into one payment. The interest rate on a HELOC can be considerably lower than the rates you’re already paying on credit cards, unsecured loans or department store cards.

I know what you’re thinking, and you’re right. There’s just not enough time to finish any major projects between now and the holidays. But the real beauty of a HELOC loan is that you’re only paying interest on the amount of the credit line you use. So, you can fund your loan before you start interviewing contractors or buying materials. You’ll pay nothing on your zero balance until you start making purchases or cash advances. My wife always likes to remind me that there are numerous DIY projects that can be started in the meantime. I’ll bet she could find 100 of these little projects around the house, with enough uninterrupted time on Pinterest. I’m already picturing myself painting a few rooms, changing the faucets in the kitchen and bathrooms, re-organizing the garage, installing energy-efficient LED lighting throughout the house, or even installing one of those pricey thermostats so I can monitor and adjust the temperature from anywhere with my smartphone. Did you know you could convert a garden shed into an office or a studio? Me neither.

One last thing: Do you notice that your houseguests seem to keep the thermostat at a more aggressive setting than you? Do they leave lights and televisions on when they leave the room? Do they think you make your own electricity? Well, now you can! Your Mission Fed HELOC could be used to purchase solar panels for your home so you don’t have to run around the house like a crazy person, hunting down energy wasters.

Don’t stress over the holidays this year. You can consolidate existing higher interest rate debts, finish all of your projects, big or small, and enjoy the convenience of one, low monthly payment with funds from your user-friendly Mission Fed HELOC. If a reliable fixed rate is more your style, a credit union home equity loan from Mission Fed might make more sense. The best part is that you can apply on our website and receive a credit approval in minutes.

Your home-improvement projects are calling. The holidays are coming. The in-laws are coming. Don’t say I didn’t warn you!

Mission Fed CTA Banner.

Vince Nowicki

Vince Nowicki

Vince Nowicki is 1st VP, Real Estate Operations & Servicing at Mission Federal Credit Union. He has over 20 years of experience in the mortgage industry, including numerous aspects of the business from loan origination, both retail and wholesale, to secondary marketing and bulk loan acquisitions.

More Blog Posts

Things to know as a first-time homebuyer

Everything about buying a home is new for a first-time homebuyer—and there is a lot more to it than...

As a first-time homebuyer, you probably have many questions. Asking a mortgage professional is always a good idea, and it might also be helpful to ask your trusted friends and family who have experience buying a home about their recommendations, too. Here’s what you...

There's No Monopoly On Learning About Real Estate Investments

If you liked Monopoly as a kid, you might want to think about commercial real estate.

1st VP Member Business Lending Steve Hable discusses why now might be a good time to invest in real estate in Southern California.

First-time homebuyers need Mission Fed

There’s a lot to consider before taking the plunge into home ownership, and there’s plenty of...

When you start thinking about buying your first home, chances are you’re getting a lot of unsolicited advice from family, friends and coworkers. There’s a lot to consider before taking the plunge into home ownership, and there’s plenty of information available. Let’s talk...

Why you should open an account with Mission Fed in 2016

Mission Fed offers accounts to help you make your 2016 goals a reality while continuing to support...

With more than 25 local branches to serve your needs, Mission Fed is the largest, locally based financial institution exclusively serving San  Diego County. Because we are a great union that was founded not for profit, but for service, we’re able to offer low Auto Loan,...

Branch/ATM Locator

Search for Mission Fed Branches and ATMs, or 30,000 CO-OP Network ATMs Nationwide