Home equity loans are an increasingly popular way to raise cash. Find out what the risks and rewards are.
Your home is your castle — and sometimes it’s also your bank. The equity in your home — the current appraised value minus the amount owed on the house — can be tapped through loans at lower interest rates than credit cards. This chapter defines the types of home equity debt and the pitfalls of each. We also look at the tax advantage and low interest rates that make them such a popular option for borrowing.