Here’s What You Can Do With a Home Equity Loan
There are a lot of perks of owning your own home, but from a financial perspective, the most significant is the ability to build equity—that is the difference between the market value of your home and what you owe on your mortgage.
As your equity grows, so does your potential to capitalize on it, using it as collateral to secure the funds for major financial investments. This is known as a home equity loan and how it works is pretty straightforward: You borrow money against the amount of equity you have in your home.
Why would you do that? Well, you can use this loan for a variety of purposes. Here are some of the most common:
- Funding a student loan for yourself or your child
- Paying off or consolidating credit card debt
- Funding a vacation
- Paying for weddings or important celebrations
- Starting a business
- Making home improvements and upgrades
- Paying medical bills
- Making key purchases, such as a car or a truck
- Funding investments
- Set aside for an emergency fund
Welcoming Advantages of Home Equity Loans
Using a home equity loan can have several potential advantages:
- The interest rates for home equity loans are fixed, instead of variable, and your monthly payment is consistent, so you never have any surprises.
- You can pay for big purchases little by little.
- The interest rate you pay on a home equity loan is often lower than those for credit cards or other types of loans.
- You can usually get access to funds quickly, sometimes within days of completing the loan documents.
- You also might be able to deduct the interest you pay on a home equity loan. Talk to your tax advisor for specifics.
Apply for a Home Equity Loan With Us Today
At Common Trust, we are proud to provide the personal banking services our members deserve. If you’re interested in learning more about our home equity loans or you’d like to apply, reach out to us today!
Until Sept. 30, we’re offering a special deal with our home equity loans. Learn more here.