If you’re a homeowner with equity in your property and you’re looking for ways to fund a big plan, you might have some good options on your hands. One way to get the funds you need is through a second mortgage using your home equity, which could come in the form of a home equity line of credit (HELOC) or a home equity installment loan.
Not sure what using your home equity means? No problem. Before diving in, check out the Achieve Your Goals platform by U.S. Bank. It’s a handy resource with lots of articles about managing your finances, including how to use home equity.
A HELOC and a home equity loan both let you borrow money using your house as collateral, but they work a bit differently. You’ll need to decide which one fits your situation best.
However, these options might not work for you if:
– You plan to move soon, as you’ll need to pay back the loan when you sell your house.
– You’re not sure if you can handle the monthly payments since your home is on the line.
HELOC: With a U.S. Bank HELOC, you can borrow money whenever you need it without having to reapply each time, as long as you stay within your credit limit. This flexibility is great for things like buying a new car, consolidating debt, or starting a home renovation. Plus, the interest rates are usually lower compared to credit cards or unsecured loans.
Home Equity Loans: A home equity loan gives you a lump sum of money that you pay back in monthly installments. It’s perfect for big, one-time expenses like a major home improvement project. U.S. Bank offers home equity loans with attractive rates and low monthly payments, along with potential bonuses.
U.S. Bank provides a variety of home equity options to help you secure the funding you need in a way that works best for you.