HELOANS

A Home Equity Loan (HELOAN) is a type of loan where homeowners borrow a lump sum of money, using the equity in their home as collateral. The loan is typically repaid in fixed monthly payments over a set period, usually 5 to 30 years. Since the loan is secured by your home, interest rates tend to be lower than unsecured loans. HELOANs are ideal for large, one-time expenses like home renovations, medical bills, or debt consolidation. The amount you can borrow depends on the value of your home minus the balance of your existing mortgage. However, because your home is at risk if you fail to repay the loan, it’s important to borrow responsibly.