Is anyone using HELOCs for home improvement nowadays given the rates? I have a few projects coming up over 5 years. Basically, one major $15-35k project per year.

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They can be great if you know how to use them. The rate is lower than a credit card that’s on a non promo rate, but not great overall. If you can plan appropriately, they can be great for short term projects, especially if you’re in a position where you have bonus payments or stocks vesting that happen once or twice a year, but you need the liquidity as projects become available.

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Exactly what PM1 said. I’m using 50K of my heloc to pay a contractor for a large amount of work, knowing that I have stock vesting in September to pay it back down. Way easier than trying to get a construction loan as I only need it for a few months

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Thanks both. I have the cash to pay but thought about a personal loan or HELOC. I am responsible with my money but have many projects coming up in the next 3-5 years.

I actually sold stock to pay down my HELOC at 8.5%, I figured I’d take a risk free return of 8.5%…and I’m always a proponent of using HELOCs as much as possible. These rates are not worth paying for debt unless you have a sure way to make a higher return (i.e. value-add improvements) ideally with a path toward paying back debt. Once these rates calm down, I’ll use my HELOC again.

I’m at 8.5 with my heloc and it’s annoying for sure - even if I’m only using it for a few months

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