Where to get a home equity loan
Inflation and the higher interest rates that have accompanied it have left many Americans looking for new ways to pay their bills. While a part-time job or passive income stream may help, it's not always easy to work multiple jobs. And traditional credit options like credit cards and personal loans are often saddled with higher interest rates. Fortunately, homeowners with just minimal home equity can use that money to help them get ahead.
Home equity can be accessed in multiple ways, perhaps most popularly via a home equity line of credit (HELOC) or home equity loan. Home equity loans, in particular, come with lower interest rates and a favorable tax deduction if used for IRS-approved home repairs and renovations. They're often a cost-effective and valuable way for homeowners to finance major expenses.
But where, exactly, does one go to get a home equity loan? That's what will answer in this article.
If you think you could benefit from taking out a home equity loan, start exploring your options here now.
Where to get a home equity loan
If you're a homeowner looking to take out a home equity loan, you have multiple options to choose from. Here are three places where you may be able to get one.
Your current lender
When looking for a home equity loan, start at the beginning - specifically with your current lender. Not all lenders offer these sorts of loans, so your lender may not be able to help. But if they do provide this option, chances are good you'll be able to get competitive rates and terms from them.
They will know about your credit history and reliability, so they will likely be more comfortable providing lower rates than other lenders. That said, don't automatically sign up with your current lender, either. They may want to keep your business, but you may have better options elsewhere.
Other banks
With so many banks to choose from, it would be foolish not to consider all your options. Check rates and terms from at least three other banks to compare against each other (and see if they're better than your current lender). Shop around and do your homework.
Just make sure to get accurate quotes. So, if you want a home equity loan for $50,000, get quotes from a second and third lender for the same amount. This way, you'll have an accurate, apples-to-apples comparison to review.
Start shopping for home equity loans here.
Online lenders
Don't limit yourself to lenders with physical locations. There are many reputable and safe online lenders that can offer you competitive terms. The process of applying and having the loan disbursed may be slightly different than what you would experience if you walked into a local bank. But the end result - getting a low interest rate on a home equity loan - is the same.
The bottom line
If you have equity in your home, it shouldn't be too difficult to find a lender who can get you set up with a home equity loan. As is the case with most financial products and services, however, the best rates and terms will go to those with the highest credit scores and cleanest credit histories. So do your best to get your credit in shape before applying. From there, do your research and explore options with your current lender (if they offer these types of loans) as well as other banks and online institutions.
You can get started online here now!
