A home equity loan, also known as a second mortgage, allow homeowners to borrow money from their home's available equity.

Home equity loans are commonly used for debt consolidation, home improvements, educational expenses, unplanned emergencies, vehicle purchases, and other gifts and purchases.

Home Equity Benefits

Home equity loans are a popular financing option for homeowners who need additional cash. These loans usually offer a lower interest rate than credit cards. In addition, the interest you pay may be tax deductible (consult a tax advisor).

Fixed Loan vs. Line of Credit

The two most popular types of home equity loans are a home equity line of credit (HELOC) and a home equity fixed loan:

• A HELOC offers you a revolving credit line with a variable rate, much like a credit card. You draw only what you need, when you need it. They normally have a lower monthly payment because your payments are interest-only.
• With a home equity fixed loan you receive the entire loan amount at once. A home equity loan offers the stability of a fixed rate and fixed payments over the life of the loan.

Compare and Save at Carfinance.org

If you do decide that a home equity loan is right for you, remember to do your homework. There are a variety of loan options available so it's important that you compare lenders and rates in order to find the best deal.

We at Carfinance.org make it easy to compare home equity rates and save. Get multiple quotes. Compare offers and choose the loan that is right for you at no cost and no obligation.