Why Your Neighbors Are Tapping Their Home Equity
You've accumulated a decent amount of equity in your home. Why not put your equity to use with a home equity loan or a home equity line of credit (HELOC)?
Both allow you to borrow against the equity in your home. A home equity loan is a lump sum option with a fixed interest rate and payment schedule, while a HELOC allows you to draw funds as needed (similar to a credit card).
If you did tap your home equity, what would you do with the funds? Probably make home improvements or repairs, according to a recent Bankrate.com survey. Almost three-quarters of homeowners considered those good reasons to borrow from your home equity. Other popular reasons included debt consolidation (44%), covering educational costs (31%), paying regular household bills (15%), and making investments (12%).
It's a sign of trouble when you're using a loan to pay regular expenses. According ...
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