Home Equity Loans

A home equity loan is a type of loan that enables you to use the equity you’ve built in your home as collateral to borrow money. Like a primary loan used to buy a house, your home is used as security to protect lenders if you end up defaulting on your loan.

Home equity loans are often called second mortgages because you have another loan payment to make on top of your primary mortgage.


Pros And Cons Of Home Equity Loans?


Before you decide to get a home equity loan, you should be aware of the pros and cons. Consider your financial circumstances to determine whether the advantages outweigh the disadvantages.




If a home equity loan doesn't seem quite right for you, you may still have other options for leveraging your home equity. For example, a cash-out refinance might be a better choice for you. Try exploring your options to figure out what financing path works best for you and your current mortgage.


When Is A Home Equity Loan The Right Choice?


Home equity loans aren’t perfect but they can be a great choice for some homeowners. Here are a few situations where a home equity loan makes the most sense: