Which type of equity loan is right for you? It depends
on the purpose for the loan and how long you need the
The tax deductibility and low interest rates of a home equity loan make it attractive. What do most people
use the money for? We look at the common reasons people borrow
against their equity and also show which type of loan — the
lump-sum equity loan or the little-at-a-time HELOC — is best suited
to the purpose. We also point out the pros and cons of these loans
in a simple manner.
What you can expect to learn from this
- Why people borrow against their equity
Home improvements, debt consolidation or a new car are just a few
of the reasons people take out a home equity loan.
- Pros and cons of debt equity
A simple chart lays out the pros and cons of debt equity —
including the fact that you could lose your house if you default on
the loan payments.
5 questions to
help choose a loan or line of credit
Lump sum or a little at a time? Short term or long term? These are
some of the considerations when you’re deciding which loan to