A home equity loan, sometimes referred to as a home equity installment loan, may be a way to help you work towards your goals. Here’s some of the most popular uses of a home equity loan.
For one-time home remodel projects, a home equity loan is a great option. You are improving your home, and you’re reinvesting the money back into your property.
If debt management has become a burden, a home equity loan could help you consolidate your debt into a single, more manageable payment at a competitive rate. Often times, this rate is much lower than a credit card interest rate.
Weddings and celebrations
A large one-time expense can be difficult to cover from savings alone. This is one of the most affordable ways to fund a large expense.
When student loans aren’t an option, or enough to go around, a home equity loan can be another solution to help you fund a loved one’s higher education.
What is equity?
The equity refers to the difference between what is owed to the mortgage lender and the current market value of the property. If you owe $100,000 on your mortgage but your home is worth $250,000, your equity is $150,000.