With so much uncertainty during the pandemic, traveling outside the state or country this summer may not be at the top of your priority list. However, with state parks and campgrounds re-opened again, there’s plenty of fun to be had right here in Colorado. If you’re short on cash this summer, tapping into the equity in your home could help. Here’s how a Home Equity Line of Credit (HELOC) works and some fun ways it could help fund your summer staycation.
How a HELOC Works
A HELOC is a revolving credit line that allows you to borrow money as needed, with the equity built up in your home serving as collateral for the loan. The equity in your home is determined by the difference between how much you owe on your mortgage and how much your home is worth.
Funds can be spent however you choose. You can withdraw money as needed over a specific amount of time known as the draw period. This can be beneficial if you don’t know exactly how much money you’ll need. After the draw period ends, you enter a repayment period when you have to start making payments back on the loan. Typically, a repayment period ranges from 10 to 20 years.
Summer Staycation Ideas for a HELOC
We’re lucky to call Colorado home. Some of the most beautiful scenery in the country is right here. Even though our state is currently under safer-at-home guidelines, there’s still plenty of fun things to do.
Colorado State Park campgrounds are now open for camping. You must typically make a reservation and groups are limited to 10 or fewer. Before traveling, check with the Colorado Parks & Wildlife for current campground openings. Use a HELOC to buy an RV. It’s a great way to create new memories with family and friends. Plus, you may be able to get a lower interest rate with a HELOC instead of financing through an RV dealership.
Catch Up on Hobbies
Another perk to living in Colorado is all the fun, outdoor hobbies. You can use your HELOC to buy a canoe, kayak, jet ski’s or a boat to enjoy the many Colorado rivers and lakes. Or buy the whole family new bikes to get out on the many bike trails throughout the state. Whatever you enjoy doing, a HELOC can help fund your hobbies.
Bring summer fun to your own backyard, no matter how big or small. If you’ve got the space and budget, maybe a swimming pool would make your summer at home complete. Installing a swimming pool isn’t cheap, but a HELOC could help you fund this project at a low interest rate. If a swimming pool is a little outside your comfort zone, you could still turn your outdoor living space into a relaxing oasis with new patio furniture, landscaping or whatever you want.
If you need a little help funding your summer staycation, consider a HELOC. If you’re not sure how much equity you have, use our free, online home equity calculators. Right now, when you start a HELOC with us, you’ll make no payments for 60 days and have no closing costs. Visit our website for more details and decide whether a HELOC is right for you.