ICYMI: Earlier this year, Notarize announced its newest Real Estate capability — HELOCs, or home equity lines of credit — equipping Title and Lender customers with an all-in-platform that can now support every type of transaction from anywhere, and at any time.
While our initial announcement will tell you everything you need to know about HELOCs — what they are, who is eligible to complete them on the Notarize for Real Estate platform, and how to do just that — it’s important to understand the bigger picture:
…in an otherwise volatile housing market by allowing homeowners to leverage the value of where they are, and give them the financial flexibility to get to where they want to be. They also allow for the majority of a borrower’s mortgage to maintain low interest rates, a result from past mortgage booms.
With that in mind, here are the top 3 uses case for which homeowners are using HELOCs to prepare and build — pun absolutely intended — for the future:
From kicking off home improvement projects to pursuing advanced degrees and beginning that “dream” business venture, HELOCs create enormous potential and expansive opportunities for people to make meaningful investments in their homes, in their futures, and in themselves.
Last month, the Federal Reserve Bank of New York released new data which revealed that household debt across the United States hit a record of $16.9 trillion during the fourth quarter, alone. The lion’s share of the debt can largely be attributed to mortgages. Credit card debt — which is spreading like wildfire in the form of carried balances and delinquencies — was dangerously close behind. Paying off high interest credit card debt with a lower interest HELOC can often save homeowners a considerable amount of money and even improve their monthly cash flow.
As the late Benjamin Franklin famously said, “By failing to prepare, you are preparing to fail.” HELOCs offer homeowners a financial safety net so they are always prepared for life’s emergencies before they even happen. From broken appliances to broken bones or even natural disasters, a HELOC is a simple way to provide peace of mind leveraging the home equity that you’ve worked so hard to build.
Whether you’re in need of a HELOC — or maybe a little hope, too — we look forward to helping you get there with Notarize.