Planning for your second act
Maybe you've recently retired but don't really feel "done" with working. Maybe you're ready to see if you can turn that hobby into a passion, or give back by working for a cause you believe in. Maybe you took some time off to take care of your children and don't want to go back to the job you did before. Maybe you've spent years on one track that just doesn't feel right anymore.
Whatever the reason, if you're considering a transition to your "second act," a new career that meets your needs at this stage in your life, you're not alone. Nearly half of employed adults aren't working in their ideal field, according to a recent survey.
Launching your second act may feel overwhelming, but with some planning and financial support, you can put yourself onto a new career path. You'll need to consider the impact on your family's income, and sources of funding, such as a Home Equity Line of Credit (HELOC), that could help you cover short-term expenses.
Depending on the field that you're hoping to enter, you may need some additional training or other education, such as a new degree or certification. Students over the age of 25 comprised nearly 40 percent of those currently enrolled in college, according to government data. While some career-changers may be interested in returning to school full-time, others may opt for part-time and online classes to reach their goals.
The decision to return to school requires not only a time commitment, but also a financial one. The amount of the financial burden depends on whether you're giving up an income to return to school and the type of program you're pursuing. Sometimes, getting into your second act doesn't require lengthy re-education or training at all.
A two-year community college degree taken full-time, for example, would run nearly $7,000, while certificate programs can range from a few hundred to a few thousand dollars.
How a Home Equity Line of Credit Could Help
If you need to borrow money to pay for your education, you should explore all available options, including student loans. In some cases, a HELOC may make more sense as a source of funds, especially if you're going to school less than half time and student loans aren't a viable option.
A HELOC allows you to tap into the equity that you've built up in your home. Since you can make withdrawals strategically, you can use it flexibly to match your needs. And as you decide your school schedule, the HELOC is ready when you need it for the amount you need.
A home equity line of credit may also offer more flexible repayment options than student loans, most of which require a principal and interest payments after a six-month grace period after graduation.
More information
We are committed to helping you reach your potential by providing personalized solutions. Our dedicated colleagues can help you find the right product to help you reach your goals. To learn more about home equity, please call 1-888-514-2300, visit us online, or Ask a Citizen at your nearest Citizens branch.
Related topics
What is a home equity line of credit
Invest in education
Ways to use home equity to fund your dreams
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Disclaimer: The information contained herein is for informational purposes only as a service to the public, and is not legal advice or a substitute for legal counsel, nor does it constitute advertising or a solicitation. You should do your own research and/or contact your own legal or tax advisor for assistance with questions you may have on the information contained herein.
Variable Annual Percentage Rate (“APR”) is based on The Wall Street Journal Prime Rate (“Prime”) published on the last business day of the month, (5.50% APR as of 2/28/2019). Maximum APR 21%. Minimum APR 2.5%.
Obtaining the best rate requires the following criteria to be met: 1) A new home equity line of credit application, 2) A line amount of $100,000 or more, 3) Line must be in first lien position, 4) Having a Citizens consumer checking account, set up with automatic monthly payment deduction at the time of origination, 5) A loan-to-value (LTV) of 80% or less, and 6) Strong creditworthiness.
Eligible properties include owner-occupied 1- to 4-family properties, condominiums, and 2nd/vacation homes. Ineligible properties include, but are not limited to: investment property (defined as non-owner occupied property), a co-op, mobile home, or manufactured housing. Property must be located in CT, DE, IL, IN, KY, MA, ME, MI, NH, NJ, NY, OH, PA, RI or VT.
Rate and terms are subject to change and credit approval. Home equity lines of credit are available in first or second lien positions. Not available for homes currently for sale. Homes previously listed for sale must be off the market for at least ninety days prior to application. Property insurance required. Flood insurance may be required.
No annual fee for the first year, then $50 per year thereafter. Pre-payment fee of $350 if closed within the first 36 months. Citizens offers Home Equity Lines of Credit as low as $17,500, but terms may vary.
© Copyright 2018 Citizens Financial Group, Inc. All rights reserved. Home equity lines of credit are offered and originated by Citizens Bank, N.A. (NMLS ID# 433960). Citizens is a brand name of Citizens Bank, N.A. Equal Housing Lender. Member FDIC.
