Financing: HELOC

Some families choose to purchase their new Florida home with the proceeds from a HELOC, home equity line of credit, that they take out on their current residence. This is extremely common when people are preparing for retirement in Florida, but it is also common when families are seeking a second or vacation home in the sunshine State!
Using a HELOC to purchase a new custom home can be very cost effective because many banks charge little to nothing to open up such a line of credit. Also, when you close on your new home, the transaction is basically seen as a cash sale meaning that you have fewer closing cost and settlement charge expenses (there is no mortgage bank involved).
For example, let’s say you have $500,000 in equity in your current home. You could open a HELOC for $350,000 and pay cash for your new custom home. When you are ready to make the move to Florida more permanent, if this is your plan of course, you sell your current home, payoff the HELOC and have no payment – what a great life!
Another benefit of using a HELOC now to build your new custom home is that you can take advantage of today’s lower construction costs – why pay more in the future for the exact same home?
If you think you would like to learn more about how this all works, or you would like to start discussing your custom floor plan design, call or text (863) 640-2246 now, or contact us online today!