What is a Home Equity Loan?

A home equity loan allows homeowners to borrow against the equity in their home. This type of loan is typically secured by the property itself, making it a lower-risk option for lenders.

How to Use Home Equity Loans

• Home Improvements: Many homeowners use these loans to finance renovations.
• Debt Consolidation: They can also be used to consolidate higher-interest debts.

Before taking out a home equity loan, it's crucial to understand the risks involved, including the potential for foreclosure if payments are not made.