Home equity loans offer a convenient way to access cash tied up in your home. But there are a few essential things to consider before you decide to borrow against your home’s equity. When you apply, lenders examine your credit score, debt-to-income ratio, and home equity. They also want to ensure you’re a reliable borrower who can repay the loan.

You Need Money

Home equity loans are known for homeowners to borrow against their home’s equity. These loans typically have low fixed interest rates and can be repaid in fixed monthly installments over five to 30 years.

Different lenders use your debt-to-income ratio and credit score to determine how much you can borrow.…

If you are a homeowner, you may be sitting on tens of thousands of dollars in cash. In recent years, housing values across the nation have dramatically risen since the housing crisis in 2008. According to Zillow, the upward trend in home values began in early 2015. From 2017-2018, home values increased by 8.7 percent. Home values in 21 of the top 35 housing markets are higher than they were at the peak of the real estate boom in 2006. This is an excellent option if you need large sums of cash for anything, including launching a startup.

If you were fortunate enough to purchase a home soon after the 2008 housing crash, you can have access to a large sum of money through a home equity loan.…