The Power of Home Equity

Shares

This post is written and sponsored by U.S. Bank.

Seems you’ve got a bit of a dilemma on your hands. That big project you’ve had in your head for what feels like forever is now actually coming together on paper and just waiting to be started. You have the time to do it and – best of all? – you want to do it. There’s just one problem. You need funds, because without them, your dream project stays on hold.

Influencer-heloc3

But fear not! If you’re a homeowner, and have equity in your home, you may have some options. One possible funding opportunity could be a second mortgage through access to your home equity. You may be able to take out what’s called a home equity line of credit (HELOC), or a home equity installment loan.

Influencer-heloc2

Unfamiliar with the idea of using your home‘s equity as collateral on a loan? No problem. Before you go any further with your plans, check out the Achieve Your Goals site. It’s a new financial resource from U.S. Bank. It’s a great resource with a variety of articles on financial topics such as home equity.

While the end result – access to funds – is essentially the same through both a home equity credit line and installment loan, and they both use your home as collateral, they are structured differently. So you’ll want to see which of these makes the most sense for your unique circumstances.

On the other hand, a HELOC or Home Equity Loan may not be the right move for you if:

  • You plan on moving soon. You’ll need to pay back the line or loan when you sell your home.
  • You might not be able to afford monthly payments. Remember your home is used as collateral.

The HELOC

With a U.S. Bank home equity line of credit, you may be able to borrow funds (up to the limit on your line of credit) on an as-needed basis to finance what you want, when you want, without having to reapply. For example: buying a new vehicle, consolidating debt or a starting a home remodeling project. There’s no need to reapply as the need for funds arises (as long as you don’t exceed your amount of credit). Also, HELOC interest rates tend to be lower than credit cards or unsecured loans.

Influencer-heloc1

Home equity loans

A home equity loan is essentially an installment loan. You apply for a specific loan amount and make monthly payments to pay it off. A home equity loan can be a great way to consolidate debt or pay for a one-time expense like that big project that’s begging to be finished. A U.S. Bank home equity loan can be a great way to go: competitive rates, low monthly payments and the bonus of potential.

With U.S. Bank you have home equity options. This makes getting a loan or line an even better choice!

Visit Sponsors Site

Shares

21 thoughts on “The Power of Home Equity

  • April 28, 2015 at 11:44 pm
    Permalink
    Interesting option. I am not really well versed in home equity loans though there is a lot we need to do around here to keep up with this big house. It would be nice to invest back into our home. Reply
  • April 28, 2015 at 3:13 pm
    Permalink
    I know my mom used to use her home equity for a lot of loans when I was younger. I am not sure I have much yet with my house, but it is something to consider in the future. Reply
  • April 28, 2015 at 9:58 am
    Permalink
    It's a great option for some to have for sure! Cautiously and with much research this could help a lot of people make changes to older homes. Reply
  • April 28, 2015 at 9:36 am
    Permalink
    I have a friend who refinanced with a home equity loan and it was a great choice for them. They were able to replace several windows and put in new kitchen flooring and their new monthly payment is actually less than it was before. Reply
  • April 28, 2015 at 9:09 am
    Permalink
    Luckily being third time homeowners, hubby and I have never had to resort to a home equity loan though we do try and keep up with the maintenance on our home and keep everything modern. Reply
  • April 28, 2015 at 9:08 am
    Permalink
    Hi Amanda, Home equity loans help so much - like if you wanted to enlarge and update your kitchen - which is what we did just a couple of years ago - and increased our property value, our home is larger, newer looking and WOW - we so enjoy it even more! And, since then we've been able to pay off that home equity loan quickly - double winner! Reply
  • April 27, 2015 at 11:30 pm
    Permalink
    This is really great information! We are needing to do a few renovations to our house, and have been looking for a way to get the funds to do so. Thanks for sharing! Reply
  • April 27, 2015 at 8:44 pm
    Permalink
    This information may come in handy pretty soon. A lot of people in my family are moving soon. Reply
  • April 27, 2015 at 8:36 pm
    Permalink
    This is an awesome post- great ino! I took a line out on the house for medical bills a few years ago, and it was the best idea because it cleared our debt and gave us a consolidated payment! Reply
  • April 27, 2015 at 6:27 pm
    Permalink
    my sister has done home equity loans on her house in order to do upgrades on their home. They have made a lot of improvements over the years. And once they get one paid off, they begin work on the next project. Reply
  • April 27, 2015 at 4:20 pm
    Permalink
    I have been doing small renovations to my home. I hope when it is time to sell it is at a good price. Reply
  • April 27, 2015 at 3:32 pm
    Permalink
    My father just paid of his house, he bought, new, when I was a teen. The value has increased tremendously, but he recently learned there are many small things he can do to help increase the equity too! Reply
  • April 27, 2015 at 1:22 pm
    Permalink
    We've been kicking around the idea of getting a home equity line for some renovations. That's the only reason we'd get one, though. They can be convenient when needed. Reply
  • April 27, 2015 at 1:20 pm
    Permalink
    Home equity loans are a great way to finance home renovations and the like. Just be careful that you don't get in over your head. Reply
  • April 27, 2015 at 1:01 pm
    Permalink
    I won't know my home equity until I go to sell it someday, but I certainly hope it will be up, up, up! Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

CommentLuv badge