This article is brought to you by U.S. Bank.
It looks like you’re in a bit of a pickle. That grand plan you’ve been mulling over for quite some time is finally taking shape on paper and is ready to be kick-started. You’ve got both the time and the desire to make it happen. However, there’s a catch – you require funding, and without financial backing, your ambitious project will remain in limbo.
Don’t fret, though! If you’re a homeowner with equity in your property, numerous possibilities might be available to you. One such option could be a second mortgage financed through your home equity. This could allow you to take advantage of what’s known as a home equity line of credit (HELOC), or a home equity installment loan.
Unclear about using your home equity as loan security? No worries. Before you proceed with your plans, take a look at the Achieve Your Goals platform, a novel financial aid from U.S. Bank. It’s an excellent resource, stocked with a range of informative articles on financial topics, including home equity.
While a home equity credit line and an installment loan both provide access to funds and use your house as collateral, they are structured differently. Therefore, you’ll have to figure out which option aligns best with your individual circumstances.
However, a HELOC or Home Equity Loan might not suit your needs if:
You intend to move soon. The line or loan must be repaid when you sell your house.
You’re unsure about affording monthly payments. Remember, your house serves as collateral.
HELOC – With a U.S. Bank HELOC, you might have the chance to borrow funds on an as-needed basis to finance whatever you desire, whenever you need it, without the hassle of re-application. For instance, purchasing a new car, consolidating debt, or initiating a home renovation project. You don’t have to reapply each time you need funds (provided you stay within your credit limit). Moreover, the interest rates for HELOCs are typically lower than credit cards or unsecured loans.
Home Equity Loans – A home equity loan is essentially an installment loan. You apply for a set loan amount and repay it through monthly instalments. It can be an efficient method to consolidate debt or cover a one-time expense, like bringing that extensive pending project to life. A U.S. Bank home equity loan can offer attractive rates, low monthly payments, and potential bonuses.
At U.S. Bank, you have various home equity choices, thereby making loan or credit line options an even more appealing prospect!
