Funding Your Home Improvements with a Home Equity Line of Credit (HELOC)

October 31, 2022 |
Article | 3 min
| Personal Insights

Home improvement projects can be sizable undertakings. Whether trying to sell or just looking to spruce things up, the financial commitment can get as steep as the project itself.

Have you considered using your Home Equity Line of Credit (HELOC) to tackle your next home improvement project? Your HELOC is a revolving loan with an open credit line from which you can make withdrawals.

You only pay interest on the funds you borrow, with variable rates typically starting around the prime rate plus 2%. Think of your HELOC as a super-low-interest credit card.


  • Lower interest rates and initial costs compared to credit cards and other loans
  • Interest can be tax-deductible1
  • Ability to borrow what you need—and only pay interest on what you borrow
  • Flexible repayment terms
  • Opportunity to boost your credit score

The Benefits of Opting for Your HELOC for Home Improvements

Flexibility makes HELOCs the best option for your next home improvement project. You can draw money as needed rather than handing it over as one lump sum. Knowing you have reserve funds—in credit-line form—makes moving forward with your home improvements more manageable.

Your HELOC is the best option if you foresee several home improvement projects over the next several months or years. You can borrow what you need, pay for the work, and repay the loan over time. Then, you can borrow again for your next big project.

Get Started Today!

Lean on your local financial partner Arizona Bank & Trust, a division of HTLF Bank to help you explore the financial options for your next home improvement project. Don’t have a HELOC yet? Let us help you get started today! Get in touch with your local bank to speak with a trusted financial partner with deep industry insight to keep you right on track.

1Please consult your tax advisor for further information regarding the deductibility of interest and charges.