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South Buffalo Realty Company
Tap Into Your Home’s Equity
You can use your Home Equity Line of Credit (HELOC) to “Beat the Bank.” Simply loan the HELOC funds at a higher interest rate than you pay the bank to borrow them. Your profit is the difference between the interest payments you received and the interest payments you pay the bank. For example:
CASH OUTFLOW
Loan using HELOC: $70,000
Term: 12 months
HELOC Interest Rate: 4.5%
Total Interest Paid: $3,156
CASH INFLOW
Repayment: $70,000
Term: 12 months
Interest Rate: 8.0%
Total Interest Received: $5,600
𝑷𝒓𝒐𝒇𝒊𝒕 = $2,444
*This is not a solicitation for investment. This is not investment advice.
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