Start accessing your home equity
To access your home equity, you have two options: a home equity line of credit(HELOC) or home equity loan. A HELOC acts as a credit card in that it’s a revolving line of credit. You make payments and pay interest only on the amount that you spend. With a loan, you receive one lump sum and make fixed monthly payments on that amount for the entire length of the term.If you have equity in your home, a home equity loan lets you exchange a part of this equity for cash. You can use this cash loan to make home improvements or upgrades, pay for college tuition or medical bills, or go on vacation. It’s really up to you. And, the interest you pay on the loan is tax deductible. Not sure if you have enough equity built up in your home? Use our home equity loan calculator to estimate your home equity.
These loans have the same expenses as your mortgage – an application fee, title search, appraisal, attorneys’ fees and points (a percentage of the amount you borrow). Home equity lines of credit (HELOCs), on the other hand, may not have fees at all. Learn more about the differences between home equity loans and HELOCs as Our Consultants make sure you get the best equity loan for you.
If you have significant equity built up in your home, you may want to consider a reverse mortgage loan. Reverse mortgages are designed for homeowners age 62 and older looking for an additional source of income.
One of the best reasons to get a home equity loan right now is that interest rates for equity loans are lower than they’ve been since 2008. Many homeowners are taking advantage of these interest rates now while they’re so low. We can help you find the lender you need to get the best rate possible.
Top 5 reasons to get a home equity loan
Take advantage of low interest rates
Make home improvements that add value to your home
Get cash for a large purchase
Pay for college