Unlock the Power of Home Equity: A Guide to HELOCs and Home Equity Loans
Unlock the Power of Home Equity: A Guide to HELOCs and Home Equity Loans
Introduction to Home Equity
Home equity can be a valuable source of funding, especially in today's economy. With average home equity amounts around $300,000, borrowing a small amount like $15,000 may seem unusual, but it can be a cost-effective option.
Key Benefits
Lower interest rates compared to credit cards and personal loans
Tax-deductible interest for select home projects
Flexible repayment options with HELOCs
Current Rates
Average HELOC rate: 7.84%
Home equity loan rates: 8.15% - 8.30%
What to Consider
Before applying, calculate the borrowing costs and consider the variable rate nature of HELOCs.