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What is home equity loan? What does the mean if you own your house with no morgage.

Answered 8 months ago

Thinking of getting an equity loan to do major renovations in the house. Currently own our house. What does it mean by an equity loan can't seem to find answers anywhere on the internet only for people that still currently have a morgage. Would you get back into debt to fund renovations?


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ANSWER
8 months ago
That's because an equity loan is borrowing against the amount between what you owe & house value (usually up to 80%). If you're mortgage free then it'll be a mortgage you get.

If you don't understand what you're doing I suggest using a broker & explaining exactly what you need, why & lack of knowledge. A good one will explain it all & make sure you get the right info & product options available to you. My partner is a broker & is constantly boring me - sorry, enlightening me - about the new options available. Well, he thinks it's interesting!!

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REPLY
8 months ago
Sorry, just saw your 'would you' question. That would depend on how urgent the renos were & how much it'd cost. If not urgent & small, I'd save for each part, but interest rates are low so if you aren't debt adverse it won't be too much interest. It's up to you what you want. Now/later, save/debt, minor/major.