With wedding costs substantial and pretty much always on the rise, coming up with funding sources can be tough.
The average wedding cost nearly $35,000 in 2023, according to the popular planning website The Knot. That's not even counting the engagement ring. Throw in the ring and a honeymoon, and you're adding another $5,000-$10,000. Yikes.
If you're like most Americans, your savings could be a little thin by comparison. But don't automatically gravitate toward a credit card or personal loan. If you own a home, all the money you need might be in its equity. Consider a home equity line of credit, or HELOC, for example.
Lower Interest Rate
You can easily score an APR in the single digits with a HELOC - for example, check out our HELOC rates. That can mean massive savings when you compare it to average credit card rates at 20% or higher!
More Money
You can get a lot more than your typical personal loan. Personal loans are unsecured, meaning they're not backed by any collateral, and therefore have lower limits. With a HELOC, you can get up to 100% of your home's equity, which in many cases will get you closer to that $35,000 figure.
Flexibility
Unlike a traditional loan, you only pay for what you use with a HELOC. The line of credit is simply there for you when you need it for as long as the withdrawal period. You'll also get much longer to pay it back as HELOCs can often provide up to 20 years past the withdrawal term.
So, keep that dream wedding within reach with a HELOC. With lower interest rates and higher limits, it's a smart way to borrow and take the "yikes" out of wedding plans when costs get overwhelming.
Prefer a traditional closed-end loan with fixed rates? Learn about our fixed-rate home equity loan.
