What can you use home equity for?
1. Renovate, Repair, or Expand: Home improvements are one of the most common reasons homeowners take out a home equity loan or HELOC due to the high cost associated with these types of expenses.
2.Debt Consolidation: Using a home equity loan with a lower interest rate to pay off a high balance or consolidate credit card debt can be a good option.
3. College Tuition + Expenses: The benefit is mainly due to lower interest rates with home equity loans versus rates for student loans.
4. Emergency Expenses: The standard recommendation is to have an emergency fund to cover three to six months of living expenses for crisis situations. But sometimes that fund might not be enough to help you stay afloat if you suddenly find yourself in a situation.
5. Making a Major Purchase: Since you are essentially using your home as collateral for a HELOAN or HELOC, it is recommended that you use caution when making major purchases for items such as a new car or an extravagant vacation.
Make sure you do your research to know if you are getting the best rate for what you need. Plan ahead and carefully budget to make sure that you are able to pay an HE loan or HELOC in an appropriate amount of time.
To understand the difference between an Home Equity loan and a Home Equity Line of Credit, please visit www.
To apply for a HE loan or HELOC, please visit https://www.decu.com/borrow/real-estate-loans/home-equity