How do you smartly use a home equity line of credit?
Borrowing against your home can free up cash to use for other expenses and allows you to stay in your home. However, borrowing against your home requires monthly payments, does not eliminate other costs (like paying property taxes, maintenance and home insurance), and could add costs. For example, you may have to pay appraisal fees, application fees and legal fees to get the loan.
Make sure you know about all the costs along with the advantages and disadvantages of borrowing against the value of your home. You can get a home equity loan or a line of credit if you’ve paid off some of your mortgage. If you’re over age 55, you’re also eligible to apply for a reverse mortgage.
Learn more about borrowing against your home and reverse mortgages. Speak to a financial representative to learn more and to decide whether this option is right for you.