Home equity loan – how do I get one?

home equity

Need cash? Have a house? You’re in luck – you just may be able to use your home’s equity.

Deciding to borrow against the equity you’ve built in your home should be a decision made through careful thought and consideration. You’re essentially taking out another mortgage on your home and if you don’t make your payments you could find yourself losing your home.

Before you think about apply for a home equity loan, consider the following:

1. Why do you need a loan?

2. What are you going to use the money for? Is it for education expenses, an unexpected medical situation, home renovations/improvements?

3. Can you afford to make the payments?

4. Are you planning to stay in your current home or looking to sell soon and how will that affect your “making out” on the deal?

5. How much do you really need to borrow?

6. How much equity do you have?

Consider the type of loan you want – do you want a fixed rate loan at a fixed term? If so, you want to consider a home equity loan. If you want to be able to make a “draw” from a line of credit anytime you need money up to your available amount, then you want to consider a home equity line of credit. A line of credit will have a variable rate so at some point your rate could change.

If you have tax questions about tax deductions, you’ll want to talk with your personal tax advisor.

Check out our rates and terms.

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