A home equity loan is a fantastic way of unlocking the true value of your home in a way that you can use here and now. It is a secure and low risk method of increasing the capital you can spend, with great repayment options. Home equity loans typically allow you to borrow up to 80% of the value of your property and give you control over when and how you need those funds.
Why take out a home equity loan? In short, home equity can help you embrace new opportunities. And if you need any more inspiration on why you should consider capitalizing on your home equity, here are four ways that home equity can help you make the most out of your home, and your life:
1. Home improvements and expansion.
Always wanted to knock down that wall? Refinish the basement? Maybe even install a hot tub in the back yard? Well, a home equity loan is perfect for all kinds of home improvement projects. It is, after all, fitting that the value of your home should go back into it, to further increase the property’s value for the future. Home equity loans can also be used to fund big remodels, such as a top to bottom renovation, or small projects like replacing a set of windows. Being able to access and control your own loan funds whenever you want makes home equity ideal for addressing both long and short term property projects.
2. Travel.
Take advantage of the value of your property by finally going on that vacation you’ve been dreaming of. Cave diving in Mexico, skiing in the French Alps or relaxing on the beaches of Bali? It’s up to you! By funding your getaway with home equity, rather than a credit card, you’ll get much lower interest rates and a tax deduction on the interest you do pay. Simply choose the payback term that’s right for you – whether it’s five or 15 years – and enjoy a stress-free holiday knowing that credit card bills and fees are not a concern.
3. Big, one-off costs.
Major life events can be exciting and emotional, but they can also be costly – whether it’s a wedding, a new car, or four years of university education. Although many people take out a bank loan to pay for these big, one-off costs, home equity can actually offer a better alternative, due to its low interest rates and tax benefits. With more control over your capital, you can relax and enjoy that special day. Equally, if a sudden accident or injury occurs, home equity can help you pay off expensive medical bills. Unplanned costs are a burden that none of us wants to face, but at least home equity can offer some financial security at a time of distress and uncertainty.
4. Entrepreneurial endeavors.
Always dreamed of becoming your own boss? A home equity loan is a fantastic resource for anyone who’s ready to set up their own business. You can take out a fixed rate home equity loan to make a big investment all at once – a good option if you’re facing large up-front business costs such as an office space or a suite of technology. On the other hand, you could also apply for a home equity line of credit if you’d prefer the flexibility to draw funds when you need them. Then, if you face unexpected costs during the course of setting up your new enterprise, you’ll be covered with better interest rates and tax benefits than a credit card could offer.
