Home Equity loan products use the equity in your home as collateral. Since many people stay in their homes for years, the equity amount can be substantial, making these loans great borrowing tools for very large expenses. Check with your tax advisor for possible tax benefits, too.
Home Equity Line of Credit
A HELOC is an open-ended loan that allows you to draw on your funds when you need them. As you pay back the loan, that money in the line of credit becomes available again for future use without having to reapply. A HELOC is perfect for an emergency fund, last-minute projects, or paying large expenses like college tuition or bill consolidation.