Borrowing from the equity in your home could boost its overall value.
Did you know your home may be gaining equity? You can borrow from that equity to bolster its overall value or to finance other major needs.
What is home equity, and what can you do with it?
Your home may be building value as its market assessment increased and you pay down your mortgage. You have options to borrow against it with a home equity line of credit to help you fund home upgrades and cover emergency household expenses- or cover big purchases unrelated to your home.
Advantages of home equity line of credit
Depending on how much equity you have in your home, you may be able to borrow more money with a home-equity line of credit than you could from a personal loan. And interest rates on home equity lines of credit are typically lower than other forms of credit, such as credit cards or personal loans.
Before you apply
Keep these three things in mind before you tap into your home’s equity
1. The application process will include a review of your current income, debts, and credit history, and you’ll need a home appraisal. Interest rates can vary from lender to lender.
2. Make sure you;ll be able to manage your line of credit repayment schedule and make your new monthly payments.
3. Is this type of account the best fit for your needs? Talk to a home mortgage consultant if you’re not sure.