Top 5 ways to use a HELOC in NYC

Living in NYC offers unique advantages to its 8 million-plus residents. You have access to great neighborhoods and communities no other city can mimic, and you're located right in the heart of cultural and economic development. If you're an NYC homeowner with some equity built up, you may have a big-city asset with incredible potential.

The stake you have in your home holds opportunities for you to reach some of your bigger financial goals. You can leverage the money you've invested in your home to finance a refresh or remodel of your space, fund a family member's education, simplify debt repayment, buy the vacation home you've always wanted and more. Tapping into a HELOC in NYC can help you make those dreams a reality.

What is a HELOC?

A home equity line of credit is a credit line secured by your home that typically features a variable interest rate. Your home's equity determines the maximum amount you can borrow. Homeowners with a HELOC often use this line of credit to fund major expenses because HELOCs often have lower interest rates than other financing options. You borrow the sums you need during the borrowing period, which typically lasts 10 years. You need only make monthly interest payments on that borrowed amount until the repayment period begins.

Great ways to use a HELOC in NYC

A hefty chunk of your income may go to everyday bills in NYC, but as a homeowner in the Big Apple, you may have established sizeable home equity in one of the most competitive real estate markets in the country. A home equity line of credit can allow you to tap into that equity and thrive financially.

Home renovation

While you love the charm of your aging home, it may be time for an upgrade. Your condo, brownstone or house may need some upgrades to fit your family's changing needs — new appliances, an updated floor plan, energy efficiency updates or other modifications as you age. Use your HELOC to tackle some necessary repairs and desirable home improvements:

• Renovate your bathroom
• Open up your kitchen
• Modernize your windows
• Restore the original woodwork
• Create space for a home office
• Enhance your insulation
• Boost your sustainability with energy-efficient upgrades

The projects you choose could save you money on utility costs, create a more functional living space and boost your property value. As a bonus, you may be eligible for tax deduction on interest payments.

Debt consolidation

If you owe money on credit cards or personal loans, you may benefit from consolidating your debt into one monthly payment by way of a HELOC. Consolidating debt could help simplify your financial life and make monthly payments much more manageable since HELOCs typically feature long terms and lower interest rates than credit cards or personal loans.

Is debt consolidation right for you? Use our calculator to find out.

Education

Private schools can offer valuable advantages to students, but those benefits can have a big price tag. Your family may benefit from using a HELOC to cover the expenses of a private education.

Interest rates on HELOCs tend to be lower than other borrowing options, and you'll have interest-only payments throughout your borrowing period. You could cover the costs of your kids' education, your higher education degree, a professional certification, outstanding student loans, after-school care, summer camps and more.

However, using a HELOC may impact your eligibility for financial aid. And unlike student loans, HELOCs don't offer deferments and forbearances. Make sure your choice for educational financing fits your family's circumstances.

Aging in place

As you age and your needs change, you may want to modify your NYC home. A HELOC can offer you funds for senior-friendly renovations:

• Add handrails to outdoor steps
• Install shower grab bars and a walk-in tub
• Add ramps, overhanging counters and other accessible solutions for wheelchair users
• Get your staircase outfitted with a motorized lift chair
• Replace door and window hardware with easy-to-grab options
• Eliminate interior step-up areas in favor of flush flooring options
• Install a full bathroom on your ground floor
• Set up an emergency medical alert system throughout the home

Investment properties or second homes

Ready to purchase an investment property or second home? Buying a property to rent out offers unique tax deductions and diversification of your investment portfolio. A home equity line of credit can accelerate your path toward that goal by turning your home equity into cash for a down payment.

The bottom line

The right financing solution can make all the difference. With its incredible flexibility, a HELOC can help you upgrade property, fund education and simplify debt repayment. And Citizens, ranked best in HELOC customer service by Money, is ready to help you reach those goals.

Thinking about a HELOC? Get started with Citizens FastLine®, one of the easiest ways to get a home equity line of credit.

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