You've worked hard to own a home, and now you can get something out of it.
Home equity is the difference between your home's market value the total amount you owe on your mortgage. For instance, if your home is worth $200,000 and you owe $150,000, you have $50,000 in home equity. This "second mortgage" is paid to you in a lump sum and can feature a fixed or adjustable rate over a set term.
Home equity loans can be used to help you meet your various financial goals. To name just a few possibilities:
- Do home improvement projects
- Take a vacation
- Save for college tuition costs
- Pay for a wedding
- Buy a new car