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Home Equity Loan
By using your home as collateral, you can take out a loan against the equity you have built up in your house. This is called a home equity loan, not to be confused with a home equity line of credit (HELOC). A HELOC is a line of credit that is available to use as you need it, whereas a home equity loan is one lump sum that you pay back over time. Home equity loans may have lower interest rates. A fixed rate home equity loan may save you even more money.
Home equity loans may be used for any purpose, tend to have fixed rates, and can be tax deductible. When considering the use of your home and your equity as a debt solution, you should carefully consider all your options including a second mortgage, a home equity line of credit or mortgage refinancing.
There are risks to consider when applying for a fixed rate home equity loan. The interest rate of a home equity loan may be fixed at a lower rate than that of a home equity line of credit. However, the risk in taking out a fixed rate home equity loan is greater because you're taking out all of your home's equity all at once. Also, if you sell your home, the entire amount of your fixed rate home equity loan becomes due. If you've thought about other options, and a home equity loan is right for you, start the process with a home equity loan quote.
To start a home equity loan quote with DebtHelp.com, please follow the link below to our secure online loan form.