Before tapping the equity in your home, become familiar with the way home equity loans work.
Home equity loans are available in two ways — as a fixed-rate loan or a variable-rate line of credit. Which one is best for your situation?
- Why people borrow against their equity
- Pros and cons of debt equity
- 5 questions to help choose a loan or line of credit
The keys to a great rate are your credit history, your income and the loan-to-value ratio.
- What lenders look for
- The cost of a home equity loan
- Refinancing a home equity loan
Chapter 4: Watch out!
Tapping your home’s equity can be risky. Know the loan rules, your home’s value and your actual costs before closing the deal.