Turn home equity into your personal financial breakthrough
There are several ways to tap into your home equity, each with its own benefits and considerations:
1. **Home Equity Loan**: Often referred to as a second mortgage, this option provides a lump sum of money that you repay over a fixed term with set monthly payments. This is ideal if you need a substantial amount for a specific purpose, such as a home renovation.
2. **Home Equity Line of Credit (HELOC)**: This revolving line of credit allows you to borrow as needed, up to a certain limit, and pay interest only on the amount you use. It's flexible and perfect for ongoing expenses or projects.
3. **Cash-Out Refinance**: By refinancing your mortgage for more than you owe, you can take the difference in cash. This option can be beneficial if current interest rates are lower than your existing mortgage rate1.