How Home Equity Financing Compares With Other Lending Options
Factors to consider when you want to borrow money
- How much do you need to borrow?
- How quickly do you need access to funds?
- Do you own your home?
- If you own your home, how long do you plan to live there?
- How close are you to paying off your current mortgage?
- Are there promotional lending offers you can take advantage of?
Home equity lending options
- A home equity loan (HELOAN) and home equity line of credit (HELOC) both let you to leverage the equity you've built in your home to cover a variety of expenses
- A HELOAN can be used to cover expenses with fixed costs, and typically has a lower interest rate than an option like a personal loan as it is secured by your home
- With a HELOC, you can draw funds as you need them and only repay what you use—just like a credit card
- Home equity financing can be a good option for many homeowners and usually takes upwards of 30 days before you receive cash