You’ve worked hard to become a homeowner. So you want to make smart decisions on how to use home equity so you can get the most out of your money.
With a home equity loan or home equity line of credit (HELOC) you can use your home’s equity to pay for major expenses, such as:
- Debt consolidation
- Home improvements
Use home equity to consolidate debt
Since equity loans and lines of credit can often carry lower interest rates, using home equity for debt consolidation might be a smart decision for you. Use your loan or line of credit to pay off credit cards, student loans or a car loan. You’ll consolidate debt and possibly get a lower interest rate.
Use home equity to invest in your future
Use your home equity line of credit or loan to finance a college education. Tapping into your home’s equity to pay for your tuition allows you to capitalize on the long-term benefits of higher education.
Use home equity to invest in your home
If you’ve been wanting to renovate your house, using equity to pay for home improvements may be a wise choice for you. You’ll be taking the equity out of your home and investing it back into your home by adding valuable renovations.