Borrowing on Home Equity
If you need extra money for projects such as a home renovation, one option is to borrow funds using your home equity as security. Be careful not to take on so much debt that you will have trouble making payments if you have unexpected expenses.
Your home equity is the difference between the value of your home and the unpaid balance of any current mortgage. Your home equity increases with time as you pay your mortgage down and as the value of your home increases.
You will often be offered a better interest rate if the loan is secured by your home equity.
Not all financial institutions offer home equity financing options. Check with your financial institution about the financing options that it offers.
Borrowing on home equity options
- Refinancing
- Borrowing any amount you prepaid
- Home equity line of credit
- Your rights and responsibilities: Lines of credit
find out what you need know about the agreement before signing the contract - Second mortgages
Take the time to compare the borrowing on home equity options to make sure that you find the best option for you.
Related Resources
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