| A home equity loan gives you the financial power to | | | | amount of cash you need from an account with a |
| do a lot of things that you may not be able to do | | | | pre-approved credit limit. You also will only pay interest |
| otherwise. By tapping into the equity in your home, you | | | | on the amount you withdraw. |
| have access to possibly many tens of thousands of | | | | Any of these options will give you access to your |
| dollars - depending on how long you have lived there. | | | | equity, and you are free to use the money as you |
| But, with the right planning, there are some uses for | | | | wish in any of them. You can take that fantastic trip |
| that home equity that may result in much higher | | | | you've always wanted to go to Hawaii or to the |
| long-term dividends than others. Here is what you | | | | Bahamas, you can pay for a college education with it, |
| need to know about a home equity loan. | | | | medical bills, and even consolidate some of your other |
| The longer you have lived in your home - the more | | | | debt. These choices, however, may not be your best |
| equity you have built up in it. If you are fortunate | | | | option. |
| enough to live in an area that is rapidly increasing in | | | | Your best option is to take at least some of the |
| value - as some areas are, then your home could | | | | money and reinvest it into your home by making |
| provide you with a lot of equity. Several types of | | | | renovations, improvements, or additions to your home. |
| home equity loans will quickly give you access to it. | | | | The renovations that add the most to a home is |
| The different types of loans that can help you the | | | | modernizing a kitchen with high tech devices and |
| most are those that best fit in with your own plans. | | | | appearance, a bathroom, or an additional room. Each |
| You may be able, for instance, to refinance your first | | | | of these, along with many other things, can greatly |
| mortgage and get a much better deal - and get | | | | increase the value of your home - and give you even |
| access to your equity, too. Primarily, this would be with | | | | more equity. |
| a cash out mortgage. You simply refinance your | | | | Besides the benefit of adding to the value and equity |
| mortgage for a lower interest rate on what you still | | | | of your home, home improvements are also tax |
| owe, and then add to it how much you want to take | | | | deductible, which gives you even more savings. Before |
| out of your equity. At the same time, if you take about | | | | you make any renovations or additions, though, be sure |
| 5 years off of the length of the original terms, you can | | | | to check with your local Realtor, or contractor, to |
| save tens of thousands of dollars more. | | | | discover what construction style or materials will bring |
| Another way is to get a second mortgage. This usually | | | | the most value. Not everything you do will increase its |
| comes in the form of what is typically called a home | | | | worth, so it will pay to find out in advance. |
| equity loan, or you can also get a home equity line of | | | | When you go to look for a home equity loan, be sure |
| credit. Both of these will give you access to your | | | | to get several different quotes. This will allow you to |
| equity, but will also require an additional payment each | | | | compare the features and get a good idea of what is |
| month. A home equity loan is a straight lump sum loan, | | | | available. Stay away from any loan that has a penalty |
| while a home equity line of credit gives you a little | | | | for paying it off early. |
| more flexibility by allowing you to withdraw only the | | | | |