Virginia is a state ripe with culture and tradition. From small rural towns to major metropolitan cities, there is something for everyone here. There are mountain regions, the D.C. corridor, and beach resort areas all within an easy drive of one another. Couple all of this with a strong employment outlook with many fortune 500 companies making their base in the state, and it is easy to see why home values are beginning to surge once again. If you are a homeowner that has recently seen a surge in his or her equity value, you might want to opening up a home equity line of credit in Virginia.
Advantages of an Equity Line of Credit
While it might seem natural to shy away from borrowing money away from what is arguably your largest asset, there are certainly some advantages to doing so that you will want to consider. Similar to the interest your pay on a mortgage, the intent paid on your equity line of credit is tax deductible if you keep the amount borrowed below $50,000. This is a great benefit come tax time. In addition, while the interest rate will likely be a bit higher than a traditional mortgage, it will still be much lower than that charge by most credit card companies or private lenders. Both of these factors alone combine to a cheaper overall cost when borrowing money.
It is important to keep in mind that having an equity line of credit does not mean you have to utilize it. Such a credit line simply remains open as a safety net should the occasion arise. If you have good credit and some equity built up in your home, it it a great way to help bridge the financial gap should an emergency arise. In addition, with more and more Virginians finding older homes in the need of renovation today, a home equity line of credit can provide the infusion of cash to make these renovations a reality. The great part of this is that the end product will likely result in an increased home value, giving you even more equity in your home than you had when you started.
Banks Offering Home Equity Lines of Credit in Virginia
There are quite a few national, regional, and state banks and credit unions currently offering competitive interest rates on home equity lines of credit in Virginia. Rates range from as low as 3.24 percent at Third Federal Savings and Loan to 5.7 percent at Bank of America. These rates demonstrate the competitive nature of the lending industry at this moment in time, making it a great time to consider an equity line of credit for homeowners in Virginia.
Remember to compare lenders in order to get a rate and term of the loan that you are pleased with. Interest rates will vary depending on your credit worthiness, so keep that in mind as well. Also, do not that simply having equity in your home will not automatically qualify you for being approved for this type of loan. There are stringent requirements that will need to be met before the line of credit is opened up, and there will likely be some closing costs involved as well. Again, these all vary depending on the lender so make sure that you do your homework.