PrimeWay Blog

6 Smart Ways Millennials Can Use a HELOC to Save Money

Written by Keith Huckabay | Feb 6, 2020 5:00:00 PM

Life is expensive. You have to pay for your own wedding and half of your own honeymoon.

A tree might fall through the roof of your home. Between the dental procedure you financed with your CareCredit credit card and your four private student loans, debt repayment every month is a massive headache.

At PrimeWay, we'd like you to know that your home isn't just an asset. It's also a leveraging tool. Today, we reveal six smart ways Millennials can use a home equity line of credit (HELOC) to save money by turning their home into a leveraging tool.

What Is a HELOC?

A HELOC, also known as a home equity line of credit, is a credit tool that's been around for decades. It differs from a traditional home equity loan in that you're not given the entire borrowed sum upfront. Rather, you use a line of credit to borrow an amount no more than the credit limit.

Unlike a home equity loan, the interest rate on a HELOC is variable, meaning your monthly payment amount may change. However, just like a credit card, you only pay interest on the amount that you borrow.