A home equity loan is a great choice for the homeowner who is looking for funds to use in improving their home, or paying off debts. But, there are so many other uses with this type of loan. Here are just a few of them.
Home equity loans or a home equity line of credit, will let you borrow money against your first mortgage. Most lenders will allow you to borrow up to 80% of your first mortgage, and you can use the money for whatever you desire.
Some ways in which people utilize the money from these loans include:
Paying off their first mortgage – If you have a high interest first mortgage and get a low interest equity loan, you can pay off the original and save a lot of money in the long run.
Paying off bills or debt – Now you can get rid of those high interest credit cards, or pay off those personal loans, etc.
Home improvements – This can be an opportunity to add on a new addition to your home and drive up your homes value; thereby improving your investment.
Personal items – You can get a new car, take a once in a lifetime vacation with the family or do any number of things with the money from your loan.
Paying off college expenses – These loans provide a way to put the kids through college and give them the education you’ve wanted them to have.
As you can see, a home equity loan can be used for just about anything. It may be just the answer you’ve been looking for in finding that extra cash you need.
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