Have you heard about home equity loans ? If not, I’ll like to share the term of home equity loans that being define by Eric Tyson from his book ‘Personal Finance for Dummies’
Home Equity Loans
Home Equity loans or home equity lines of credit (HELOCs) can be a useful source of financing to help buy or improve a home. HELOCs are second mortgages and best used when someone already owns a home and wishes to simply tap some of that equity without affecting the existing first mortgage.
HELOCs are generally tax deductible. Once established, most HELOCs allow you to tap in to your credit line as you need or want to so you can use the money for many purposes, including a home remodel, college expenses for your kids, or as an emergency source of funds.
HELOCS downsides such as that they encourage homeowners to view their homes as piggybacks from which they can keep borrowing. The interest rate on a HELOC can increase instantaneously. Also beware that lenders can generally cancel your HELOC at their discretion, for example if the value of your home falls too much or your credit score deteriorates.
Source :- Personal Finance For Dummies
// I think this loan can help you but I’m not recommend as you will increase your debt. Don’t put pressure in your financial. Always know your limit and stay happy. For more Personal Finance For Dummies, get the book below