A home equity loan is a special type of mortgage, which allows you to tap into your home’s value to take out cash. There are many reasons to take out a home equity loan including debt consolidation, home improvements, or paying for college.
You can take advantage of rising home prices, or the fact that you paid off your mortgage and the balance decreased in order to take out an additional mortgage.
A Home Equity Loan is similar to a purchase mortgage, or a refinance mortgage. You take out a lump sum and repay it in monthly payments over a set repayment period. When shopping for a HEL consider the interest rate, lender fees, and third-party fees.
For more information about a home equity loan and how it works ...Read More