If you’re facing tough times, tapping into the equity you have accrued in your home may be your best bet.
“Home equity is a really good thing to tap into if you need some extra cash,” advises Jacob Channel, a senior economic analyst at Lending Tree.
It’s a better deal for a loan than you will find with plastic.
“You certainly don’t want to be tapping into home equity without any foresight because you do have to pay it back,” he cautions. But it’s a good deal. “Depending on what kind of home equity loan you get and what your credit profile is, you are probably going to see rates between a high four or low six percent range.”
But of course there is a downside.
“If you take out a home equity loan and can’t pay it back you do have to use your home as collateral,” Channel adds.
So there goes to homestead.
But if you are in need of money for an unexpected emergency or a remodel or college, it might be your best option.
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