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As the holiday season approaches, many of us are looking for ways to make the most out of our finances to enjoy special time with loved ones. If you're a homeowner, your home equity could be a valuable resource to help you achieve your holiday goals. Here’s a look at how you can manage your expenses wisely and celebrate without the added financial stress.

Understanding Home Equity

Home equity is essentially the portion of your home that you truly own—it's the difference between your home’s market value and the remaining balance on your mortgage. As you pay down your mortgage or as your home's value increases, your equity grows. You can tap into this equity through a home equity loan or a home equity line of credit (HELOC). At Envista, these options often come with competitive rates and personalized service, making them an attractive choice for homeowners.

Example:

   Market Value: $250,000
-  Mortgage Balance: $200,000
= Equity: $50,000 (Lenders will loan a percentage of this amount)

Benefits of Using Home Equity During the Holidays

Using your home equity can offer several advantages, especially during the holiday season:

• Lower Interest Rates: Home equity products typically offer lower interest rates compared to credit cards, which can lead to significant savings if you're considering large expenses.
• Potential Tax Benefits: In some cases, the interest paid on home equity loans or lines of credit may be tax-deductible, although you should consult a tax advisor for specifics.
• Flexible Repayment Terms: Many home equity options provide flexible terms that can be tailored to your financial situation.
• Opportunity to Enhance Home Value: Investing in your home can lead to increased value, making it a smart financial move. If you’re looking to spruce your place up before next Spring’s busy real estate season, this could be a great option.

Practical Ways to Use Home Equity

1. Home Improvements: The holiday season is a perfect time to renovate or upgrade your home. Whether it's a new kitchen, an additional room, or a cozy outdoor space, these improvements can enhance your home's value and your enjoyment of it.
2. Debt Consolidation: High-interest debts can be a financial burden. Using home equity to consolidate these debts can simplify your payments and reduce overall interest costs, helping you enter the new year with a clearer financial slate.
3. Holiday Expenses: Planning for travel, gifts, or hosting family events can strain your budget. Accessing your home equity can provide the funds needed to cover these expenses, allowing you to celebrate without compromising your financial stability or dipping into your savings.
4. Holiday Travel: Are you traveling to visit family this holiday season? Or just want to take a last-minute family getaway to avoid the hustle and bustle? Leveraging the equity in your home could be a smart way to finance that trip!

Tips for Responsible Borrowing

While leveraging your home equity can be beneficial, it’s important to make sure you borrow responsibly:

• Carefully assess your financial situation and borrowing needs.
• Stick to a budget to avoid overextending yourself.
• Consider your future financial goals and understand the implications of borrowing.
• Seek guidance from a member of our Envista Consumer Lending Team to make informed decisions tailored to your circumstances.

Home equity can be a powerful tool to help navigate the holiday season with confidence and financial security. By understanding the benefits and responsibly managing your borrowing, you can make the most of this valuable resource.

Let Our Experts Help!

If you’re interested in learning more about how to leverage your home equity this holiday season, reach out to us at [email protected] or apply online Our team is ready to assist you with competitive rates and tailored advice.