When to choose home equity financing
Home equity financing may be the best option if you'll need access to more than $50,000 or are financing a project that has unknown costs. Coupled with their low, variable or fixed rates, home equity financing can prove to be a great option. Keep in mind that as you'll be borrowing against the equity in your home, homeownership is required and at times there may be closing costs and fees with this type of financing.
When to choose a personal loan
Personal loans may be the best option to help cover an unexpected expense if you are not a homeowner with available equity. Also, you can usually get quick approval and funding from most lenders within just a few days. No home ownership and speed are two reasons why personal loans have an advantage over home equity financing – especially for one-time expenses.