Pros and Cons of Home Equity Loans

Are you looking to tap into the equity of your home for a lump sum of cash? A home equity loan may be the solution for you. However, it's important to weigh the pros and cons before making a decision.

The PROS about a home equity loan are:

• You'll have a fixed interest rate, which means it won't change over time.
• You'll have lower borrowing costs because you're using your home as collateral.
• Your payments will stay the same, so you know how much you'll pay each month.
• You can use the money for anything you want.
• You may be able to get a tax break if you use the money to improve your home.

The POTENTIAL CONS about a home equity loan are:

• You may have to pay a higher interest rate than other types of loans.
• You could lose your home if you don't pay back the loan.
• You'll have to pay extra fees to get the loan.
• You'll have two mortgage payments instead of one.
• You need to have a lot of equity in your home and a good credit score to get a home equity loan.

If you're thinking about getting a home equity loan, talk to a loan officer. They can help you understand the process and decide if it's right for you. Isaiah Slutter is a loan officer at Edwards Financial Services. He has 5 years of experience and can help you get a home equity loan. You can email him at Isaiah@edwardsfinancial.biz or call him at 480-320-3591.