One of the advantages of a HELOC is its flexibility in how it can be used. Homeowners can use a HELOC to pay for a variety of expenses such as home renovations, college tuition, medical bills or even to consolidate an existing debt with a higher interest rate. Another common use of a HELOC is to access funds for a down payment on a second home or investment property. By using the equity in your primary residence, homeowners can secure a lower interest rate and better terms than they would with an unsecured loan. Here are some common uses for a HELOC: debt consolidation, education, emergency expenses, investments, and travel.