Check Off Life’s Biggest Moments With a Home Equity Line of Credit
Private school. A college education. A dream vacation. A gourmet kitchen. No reason not to dream big. And while really great achievements are not accomplished overnight, they are within reach. First Hawaiian Bank understands what it takes to check off your bucket list of life’s biggest milestones.
For many homeowners with children, educational expenses top the list.
“Your dream may be as simple as having your child attend private school,” says Derek Wong, vice president of credit products at First Hawaiian Bank. “With increasing property values, homeowners are able to use the equity in their homes to fulfill this dream.”
For example, you just received your child’s acceptance letter to attend kindergarten at a private school. The excitement of your child being selected from a highly competitive pool of applicants quickly wears off because of the reality of how you’ll be able to afford the tuition. While parents recognize the value of a quality education, many find that they may not be fully prepared financially.
“With a home equity line of credit (HELOC), homeowners have convenient access to funds, which allows them to pay for planned milestones such as private school tuition,” Wong explains. “It also is great for unexpected or spur-of-the-moment events. They simply write a check or transfer available funds from their HELOC to a checking account and use the money to cover school supplies, text books and other expenses.”
Sending your child to college is no different. In addition to skyrocketing tuition, parents may have to plan for off-campus housing, a used car for transportation and other living expenses. Federal and private student loans typically only cover a portion of these costs due to the limited amount that can be borrowed.
The benefits of HELOCs generally outweigh other unsecured loans or high-interest-rate credit cards because: • The interest rate you pay will likely be lower because having equity collateral makes it less risky for lenders. • Interest paid on equity lines are normally tax deductible (consult with your tax advisor). • Equity lines often enable higher balance limits than personal loans and credit cards because they are secured by real property — your home.
“In addition, a First Hawaiian Bank Home Equity FirstLine PlusSM
even has a feature that allows borrowers to lock in a portion of their balance with a low fixed rate for a longer term. This gives homeowners the flexibility to use the line of credit for a wide range of purposes or activities,” Wong says.
What about your travel aspirations? An Alaskan cruise? A cherry blossom tour in Japan? Or perhaps you’ve always wanted to take your children and grandchildren to Disneyland for a week. Using your home’s equity to help cover your expenses and make your dream vacation more affordable is an excellent option. While using cash or credit cards are popular choices for travelers, you can still take advantage of your home’s equity by using it to pay for large expenses and post-travel credit card bills.
“Home equity is a source of untapped borrowing power,” according to Wong. “As your property value increases, so does your borrowing power. As long as your income supports your ability to borrow, using the equity in your home is a smart resource.
“Life is full of opportunities,” adds Wong. “Whether your goal is to secure your child’s future, see the other side of the world or treat yourself to the gourmet kitchen of your dreams, using your home’s equity is a great way to make it happen.”
To see how First Hawaiian Bank can help you check off all your milestones together, talk to a Personal Banker at any branch or visit fhb.com/yes.
What’s on your bucket list?