Home Equity Loans

A home equity loan allows homeowners to borrow a lump sum based on the equity they've built in their property—the difference between the home's market value and the remaining mortgage balance. These loans come with a fixed interest rate and a set repayment term, offering predictable monthly payments.

Home equity loans are commonly used for large expenses like home renovations, debt consolidation, or education costs. Since they’re secured by the home, they often have lower interest rates than unsecured loans, making them a cost-effective borrowing option for those with sufficient equity.

However, using your home as collateral carries risk. Failing to repay the loan could lead to foreclosure. That’s why it's essential to carefully assess your financial situation and ensure the repayment plan fits comfortably within your budget before borrowing.