Jonathon Kessler | Source | Executive VP, head of PNC Private Bank credit & cash management solutions at ...

A HELOC offers the advantage of low or no fees, while a new mortgage or refinance typically has transaction fees and closing costs, Kessler says.

“HELOC borrowers don’t have payments until they draw down the funds, which gives you more time to look for property without making mortgage payments as you would with a new loan,” Kessler says. “HELOCs typically have a floating rate, but many lenders including PNC offer flexibility and allow you to lock tranches of money into a fixed rate with a choice of how many years you want to take to repay the funds.”

Using a line of credit to fund a tax bill “provides clients a lot of flexibility and keeps their investment strategy in place, which could save them money,” says Jonathan Kessler, Head of Credit and Cash Management Solutions.

It’s not a solution available for, or applicable to, everyone, but understanding more about how this line of credit works might demonstrate how it could work for you — and not just for tax purposes, but for other liquidity needs as well.