FINANCE YOUR NEXT BIG PURCHASE WITH A HOME EQUITY LOAN OR LINE OF CREDIT
Need your roof fixed? Furnace replaced? New car? A home equity loan or line of credit puts your home’s equity to work for you. Based on how much equity you have in your home, a home equity loan has a fixed payment schedule and a fixed rate. Home equity refinancing proceeds are paid out as a one-time lump sum, and you can’t borrow funds on the loan again as you repay them.
A home equity line of credit (HELOC) allows you the flexibility to borrow, pay down, or borrow again over the life of the loan.
Benefits of a home equity loan or line of credit include:
- You get all of your money at once (equity loan) or withdraw in increments over time (line of credit).
- You can use the funds to consolidate debt or make major purchases.
- The interest you’ve paid on the loan remains tax deductible.
In order to qualify for home equity refinancing, you will need a good to excellent credit history. If you receive a home equity loan, a lien against your home will be created, and this loan will reduce your actual home equity.0