This Hawaiian Macaroni Salad is the real deal. A no-frills, creamy mac salad that is the perfect side dish for any BBQ or Luau!
Hawaiian Macaroni Salad is one of my biggest guilty pleasures. I lived in Hawaii a little over 10 years ago and became very familiar with true, authentic Hawaiian “Mac Salad”. I literally lived across the street from an L&L Hawaiian BBQ restaurant and found myself wandering over there way more often than I should have for their delicious plate lunch– always with mac salad and rice on the side (I love getting a little rice and mac salad together in one bite.. oh so good).
Home Equity Line of Credit
A “HELOC” or “home equity line of credit,” is a type of home loan that allows a borrower to open up a line of credit using their home equity as collateral. They can then draw upon it to pay for anything they wish, such as to pay off credit card debt or student loans.
What Is a HELOC?
- A home loan with a twist because it’s actually a line of credit
- As opposed to a set loan amount
- You can draw upon it when needed, which could be many times over the loan term
- Or never (some homeowners simply use it as an emergency fund)
It differs from a conventional home loan for several different reasons. The main difference is that a HELOC is simply a line of credit a homeowner can draw from, up to a pre-determined amount set by the mortgage lender, based on the value of your home, whereas with a typical mortgage, the amount borrowed is the total amount financed.
In other words, a HELOC is a lot like a credit card because of its revolving balance nature. When you open a credit card, the bank sets a certain credit limit, say $10,000. You don’t need to pay interest on the total amount, or even withdraw or spend any of the $10,000, but it is available if and when you need it.
That’s also how a HELOC works. Your bank or lender will give you a line of credit for a certain amount, say $100,000, depending on the available equity in your home. And you can draw upon it as much or as little as you’d like, up to that $100,000 limit, if and when you want.
Generally, you will be required to make an initial minimum draw, say $10,000 or $25,000, depending on the total line amount. This ensures the bank actually makes money on the transaction, and doesn’t just give you a line of credit you never touch. That would be a big waste of money for them.
Once you take your initial draw, you can put it in your bank account to use for certain expenses, borrow even more, pay it back, and then borrow again. Or never touch it and just set it aside for a rainy day.
Additionally, most HELOCs allow you to make just the interest-only payment, instead of having to pay back the principal balance. This keeps monthly payments low while also giving homeowners access to much needed cash if and when they need it.
It’s a flexible choice because you get the option to use the line of credit if you need it, without having to pay interest on it if you don’t. With a typical mortgage refinance, you pay interest on the total loan amount from the get-go, even if the money just sits in your bank account.
Most people use the HELOC funds to pay for things like paying for college tuition, home improvements, higher-interest rate debt like credit cards (debt consolidation), or to provide a down payment for another home purchase (instead of raiding your Roth IRA).
Accessing Your Funds with a HELOC
- You may be given an access card (like an ATM/credit card)
- An option to transfer funds online
- A checkbook
- Or a bill pay option
Once your HELOC is open, you’ll have a variety of options to access the funds up to your pre-determined credit limit.
Most banks and mortgage lenders will provide you with an access card that works kind of like an ATM debit/credit card. You can make purchases with it and/or withdraw cash at a branch location.
You may also be given the option to transfer funds to a linked bank account, or be given checks that can be written to anyone for any purpose, which are deducted from your credit line.
There may be a bill pay option if you want to use the funds to pay bills, or an option to transfer funds over the phone or via mobile banking.
In any case, it should be pretty easy and convenient (and usually free) to access your money.