You can use a Home Equity Loan for a variety of things. Here are a few examples to consider:
- Home Improvements. Use your equity to finance projects like a kitchen remodel. It will not only make your home more comfortable for you, it could raise the home’s value and attract buyers in the future.
- Pay Off Debt. Use your equity to pay off high-interest-rate debt, such as credit cards. Home equity loan rates are usually much lower than credit cards so you’ll save money while you pay off your debt. Plus, combining all of your credit card balances together will give you one easy-to-manage payment each month.
- Purchase a Cabin or Second Home. Use your equity as a down payment on a cabin or second home. Or, if you’re current home is paid off, use the equity as an all-cash offer on a cabin or second home — giving you an advantage over other buyers.
- Higher Education Expenses.
- Medical Bills.