Use Your Home to Get Away: Home Equity Loans with Frequent Flyer Programs
Just because you’re paying off an unexpected expense by using a home equity loan or line of credit doesn’t necessarily mean that vacation needs be out of mind. Many financial institutions partner up with airlines to offer customers a way to earn miles while conveniently using the wealth they’ve built through the equity in their homes to pay off emergency medical expenses or fund a remodeling project.
The rewards offered by these companies range from 1,000 to 5,000 miles upon taking out a home equity loan or line of credit. While these won’t automatically get you flying first class to your destination of choice on your dream vacation, they will get you at least part way there.
However, before enrolling in a mileage program and applying for a home equity loan or line of credit, check out the lending organizations. A few thousand miles are nice, but if there is a better deal somewhere else (or even better, somewhere else that offers miles as well), you will regret having not done your research first.
Even if you don’t plan on traveling or if you never end up redeeming them for a ticket or upgrade, you can donate your unused miles earned on your home equity loan or line of credit to the charities with which the airlines have partnerships. Some of the charities that have partnerships with airlines include the Make-A-Wish Foundation, the American Red Cross, and a number of research organizations and children’s hospitals. These miles might not be tax-deductible, but they are for a good cause. Besides, it’s not often that you can contribute to a good cause for free. As long as the miles earned from your home equity loan are used, whether it is by you or by someone else, these programs seem to be a win-win-win situation.
So put your seat backs and tray tables in the upright and locked positions and get ready to take off with your home equity loan!
Source: Informa Research Services