“Can I use home equity to pay off debt?”
At Cornerstone Bank, we’re here to provide resources to the Kansas City community to help finance the important things in life.
A home equity line of credit (or HELOC) is a major tool we keep in our toolkit to be able assist our customers in getting better interest rates on their major purchases.
One of the most common reasons to use home equity is to pay off debt, including credit card debt.
Using home equity to pay off debt is not only an option to you as a homeowner, but it’s also an incredibly intelligent financial choice—when you have the right bank on your side, of course.
Learn about the benefits of using home equity to pay off debt below.
Consolidation is one of the primary reasons a homeowner may consider a HELOC. Managing all of your debt into one loan payment, rather than three, five, or ten, can feel like a major relief. Many people have a much easier time tracking progress on paying off debt when there is a single bank or institution managing that debt—especially if you have a relationship with that bank!
When borrowing against the equity of your home, it’s much more likely that you’ll get a better, more competitive interest rate than if you were to take out a personal loan or a credit card.
One of the biggest perks of a home equity line of credit is that you’ll only be charged interest on the money you draw out, rather than paying interest on a lump sum as you would on a traditional loan.
This can make paying off the money you borrow much easier to manage, and less expensive in the long run.
Look to Cornerstone Bank for banking advice, insights, and more.
We are dedicated to the Kansas City community and have been in business for over 17 years. The relationships we form with customers are highly valued and we strive to provide excellent service above all else.
Let us know how we can help you, or if you have any additional questions we can answer about home equity lines of credit in Kansas City.