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Four Smart Ways To Use A Home Equity Loan

January 24, 2022 | Posted by: Marc Crossman

A home equity loan, also known as a second mortgage, is a common tool that homeowners use to pay for various needs. Here are some smart ways to use them.


Compared to other debts, home equity loans tend to have lower, fixed rates and the repayment period can be spread out over a longer period of time. Not only does this give you the convenience of paying one bill instead of several, but by consolidating your other high-interest rate loans, you could end up paying a lower interest rate and spend less money to pay off the total debt.


Many borrowers use a home equity loan to invest in renovating their home and improving their property. This may help to increase the value of the home, which can often offset the cost of the renovations if not turn a profit. When you use a home equity loan to improve your home, the interest on that loan may also be tax deductible.


Refinancing your mortgage is essentially replacing your current mortgage with another one. One of the most common reasons to do this is to take advantage of a lower interest rate and/or lower your monthly mortgage payment.


When it comes to getting a loan to cover major expenses, borrowers tend to look for the lowest interest rates possible, which home equity loans tend to offer. In case of an emergency, such as catastrophic medical expenses, a home equity loan can be a great option to help pay off the debt gradually. 


Everyone’s situation is different, so be sure to call us today at 780 701 3888 to find out what options may be best for you!



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