How Can I Use My Home's Equity in 2020?
There are times when having a little extra cash around can bring you peace of mind. You could use the money to pay down high-interest debt, make needed home repairs, or pay for unexpected medical costs. Sometimes, that extra cash can be found right under your feet.
After paying down your mortgage for years, you might have a nice chunk of equity in your home. Equity is the current market value of your home minus what you owe on it. So, if your place is worth $300,000 and you have $200,000 left to pay on your mortgage loan, you have $100,000 of equity.
Tapping your home equity can free up cash to pay down debt or undertake renovations, among other purposes. But that money isn’t liquid unless you do a cash-out refinance, get a home equity line of credit (HELOC), take out a home equity loan, or sell your home outright. (Learn more about the different types of loans below.)
Check out this article from Money.com that explains the pros and cons of each type of equity loan and the best lending companies that are active today so you can make an educated choice on what's best for your financial future. Click the banner below or go to bit.ly/moneyhomeequity