What
you can do with the money
The majority of borrowers use Coastal's Home Equity loan for debt
consolidation, creating one payment to take care of all that credit card
debt. Our loans are also used for a wide variety of other purposes, such
as home improvements, medical expenses, education, emergencies and
big-ticket purchases.
Here are some ways to
use Coastal Home Equity loans:
1. Debt
consolidation: Many people have racked up so much credit card debt
they have turned to home equity to ease the burden. Doing this can
significantly reduce your monthly interest charges, allowing you to save
or invest that much more. If you're paying a 17 percent annual percentage
rate on a $10,000 Visa balance, for example, you can save a bundle over
time by paying it off with a tax-deductible home equity loan at around 8,
9 or even 10 percent. Making monthly debt payments more manageable this
way can come with a bonus -- it can improve your credit rating.
TIP/PITFALL --
Before you secure any loan, consider how you are going to prevent yourself
from building up that credit card debt again. Cut up all but one or two
cards, quit carrying them with you and start using cash more often.
2. Home
improvements: Making upgrades and repairs to a house has aesthetic
benefits by making your home safer or more comfortable to live in. It can
also increase the fair market value of your house. That's why many
homeowners make home-equity financed improvements with an eye toward
selling their property.
TIP/PITFALL --
Be sure the work is going to be worth what you're putting into it. Kitchen
and bathroom improvements raise value the most. But if you spend $10,000
to put in a patio, a prospective borrower may not consider it worth the
higher price tag you put on your home.
Also, be aware
Coastal cannot give you an equity loan if your home is on the market. And
remember that if you've used a home equity loan, when your house sells you
have two loans to pay off.
3. Education: A
Coastal Home Equity loan used for college or technical school can pay for
itself several times over if it lands the newly educated lands a better
job. More families are also turning to home equity to pay for their
children's education because the cost has skyrocketed, they haven't saved
enough for it and their incomes are too high to qualify for grants or
government-backed loans.
4. Medical
expenses, emergencies, big-ticket purchases: A Coastal Home Equity
loan can be a godsend if you are hit with thousands of dollars in medical
bills or you lose your job. Tax advantages and lower interest rates also
make equity loans a smart way to finance a new car, motorcycle or some
other high-price purchase.
Home Equity Loans - HELOC's
Use Home Equity loans for major purchases, higher education, home
improvements, debt consolidation, or as an emergency "rainy day"
fund. 
