Why You Should Consider A Home Equity Loan
In the past few years, home equity loans have increased in popularity as a way to fund major purchases. While it might be tempting to get a loan from your bank or an online lender, there are many things you should consider before taking on a home equity loan. Mortgage loans If you're a homeowner, you may be considering a home equity loan to access the equity in your home. Equity is the portion of your home's value that you own outright, free and clear. So, if your home is worth $250,000 and you have a mortgage balance of $150,000, you have $100,000 in equity. A home equity loan allows you to borrow against your home's equity and can be used for a variety of purposes, including home improvements or repairs, debt consolidation, or investing in other property. There are several types of home equity loans available, each with its own set of pros and cons. Here's a look at some of the most popular options: Fixed-rate home equity loans: These loans offer fixed interest ...