Home equity can be a major benefit of buying a home. You can find many amazing places to rent, but if you’re the tenant and not the owner, then you won’t benefit when the property value goes up. The difference between your current home value and the amount of your mortgage loan is called equity. The equity in your home can be cash in your pocket with a home equity line of credit (HELOC). What is a HELOC? Check out this guide to understanding when and how to use a home equity line of credit.
Some home improvement projects are small enough to front the cost yourself, but many large projects can be worth taking out a home equity loan. The interest rates are lower than putting an unpaid balance on a credit card.