A HELOC can help pay for your home improvements.
What is a home equity line of credit (HELOC)?
If you are planning on home improvements projects this spring, consider having your house fund the house projects you dream about. A HELOC (Home Equity Line of Credit) can be used for multiple purposes, and unlike a credit card or a personal loan it has a low rate of interest, and the amount you can borrow is tied to the equity that you have available in your house. HELOCs come with flexible repayment terms and allow you to pay back what you spend and then draw down again as you need cash.
What is a home equity loan (HEL)?
A home equity loan (HEL) allows you to borrow against the equity you’ve built up in your home. Your equity is calculated by assessing your home’s value and subtracting the outstanding balance due on your existing mortgage loan. Unlike a cash-out refinance, a home equity loan does not pay off your existing mortgage. If you already have a mortgage, you’d continue making its monthly payments, while also making payments on your new home equity loan.
