Home Equity: Take Advantage of Your Home's Value

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Real Estate

Home Equity: How to Use It

A refinance pays off your current mortgage and gives you cash based on your equity. These are good for:

* Lowering or locking in your mortgage interest rate

* Getting large sums of money ($30,000 or more)

Home equity loans (second mortgage) are installment loans that are paid out in one lump sum. They’re good for:

* repaying credit card debt

* remodeling projects

* buying a new vehicle

*college fund

* vacation

*investment purchases

A home equity line of credit works like a credit card – you agree to a pre-set limit and then borrow as you need to, or in the event of an emergency, usually for up to 10 years. Good for:

debt consolidation

major home improvements