Is a HELOC Right for You?

A Home Equity Line of Credit (HELOC) is a financial solution that, like any financial solution, has pros, cons, and considerations. So, how do you know if a HELOC is right for you? Allow us to give you the breakdown!

What is a HELOC?

A HELOC is based on your home’s equity. If you’ve owned your home for a few years, you’ve likely built up some equity, and you can estimate this equity by subtracting the amount of money you owe on your mortgage from your property’s value. The amount you can borrow in a HELOC is dependent on this equity.

Because a HELOC is based on your home’s equity, it often comes with lower interest rates than other types of loans. This makes one a great solution for borrowing money, especially when you have big expenses on the horizon. Many people use a HELOC for home renovations, education expenses, vacations, medical bills, credit card consolidation, and more.

What are the Pros and Cons?

Opening a HELOC gives you access to a flexible line of credit. Like a credit card, you can draw funds from this line as needed. Most of the time, the interest rate on a HELOC can fluctuate with the market, meaning your monthly payments aren’t set in stone. Some months, your payments might be higher or lower. The good news: you only pay interest on the amount of money you draw from the line. This way, you have more flexibility in repayment.

A HELOC is a great solution:

  • If you don’t know how exactly how much you need to borrow.
    • If you have a project or future expense in mind but you don’t know how much it will cost you yet, a HELOC allows you to borrow only what you need, when you need it.
  • If you want flexibility in repayment.
    • You only pay interest on the amount you borrow, so you can pace out your payments based on when and how much you borrow.
  • If you have upcoming expenses but uncertain timelines.
    • For example, if you know that college tuition is on the horizon but aren’t ready to borrow yet, a HELOC can give you that safety blanket. A HELOC can also keep you covered for unexpected medical bills or other surprise expenses.


The best solution for you might not be the best solution for someone else. Our team can help you determine whether a HELOC (or an entirely different solution, like our Visa® credit card) is best for you! Don’t hesitate to contact us at (336) 832-8119 or come by one of our locations.


Phone: (336) 832-8119
Mortgage Dept: (336) 404-9965
Fax: (336) 832-8129

Lost/Stolen Debit Cards: (800) 523-4175
Lost/Stolen VISA Credit Cards: (800) 325-3678
ABA/Routing Number: 253176037

Moses Cone Hospital
1200 N. Elm Street
Greensboro NC 27401

Wesley Long Hospital
501 N. Elam Ave
Greensboro NC 27403

Alamance Regional Medical Center
1240 Huffman Mill Rd
Burlington, NC 27215

© 2022 HealthShare Credit Union.
Designed By Ewart Technologies Inc.