BUSINESS MATTERS
What You Need to Know
About Home Equity Loans
Article from BPT Website
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You can determine how much equity you have in your home, and how much your home equity loan payments are likely to be, using online calculators.
Here are the two most common types of home equity loans:
Fixed-rate equity loan: This is a lump sum amount you'll draw from your home's equity, paying back monthly at a fixed interest rate for the life of the loan, so you'll know exactly what to expect. Fixed-rate home equity loans are typically used for:
* Home improvements/repairs
* Debt consolidation
* Large purchases
* Life events
(BPT) - If you have large or unexpected expenses on the horizon, you may have access to an untapped resource: your home. You could use some of the equity you've built up in your house to meet financial goals, depending on how much equity you have and how you use it.
Here's a guide from the experts at Navy Federal Credit Union to explain how home equity loans work and when you should - or shouldn't - use your home's equity.
What is a home equity loan?
In basic terms, a home equity loan is money you're borrowing using your home as collateral. The equity in your home equals how much of your home's value you actually own (not counting the mortgage you're still paying off). Home equity loans are frequently offered at lower interest rates than other loans, so they may be a great option for consolidating debt on higher interest credit cards, or large home improvement