Let your home’s value work for you. Homeowners can use the equity in their house to finance a home equity loan to pay for debt consolidation, student loans, or home improvement projects.
There are two types of home loans you can apply for: a Home Equity Loan or a Home Equity Line of Credit (commonly called a HELOC). Both loans are secured using the value of your home. You are, in essence, converting the equity in your home to cash. Use that cash to make improvements and you could end up increasing the value of your home.
Home Equity Loan
Secure a home equity loan for purchases or projects with a fixed amount so you know what your monthly payments are each month. Think outside the box and don’t just use this loan for home improvement projects. Use it to consolidate your bills, pay for college, or take that once-in-a-lifetime vacation.
Home Equity Line of Credit
A home equity line of credit is a great option if you’re not sure what projects to start first or if you have a bunch of little projects to accomplish. No project? No problem. Keep it as a safety net for emergencies.
Choose a home equity line of credit for funds that can be used all at once or over a period of time. You have the option of accessing your funds by writing a check. As you make payments, your funds are immediately available for you to borrow again.