Cash In on Your Home Equity
Kiplinger's Personal Finance|April 2023
A home equity line of credit or loan can help you fund home renovations or refinance high-rate debt, but consider other uses, too.
EMMA PATCH
Cash In on Your Home Equity

For the nearly two-thirds of Americans who own a home, tapping into home equity can be an affordable and flexible way to borrow money. Of the two main ways to access your home equity-a loan and a line of credit a home equity line of credit (HELOC) is the most flexible because it lets you borrow and repay funds as you need them.

HELOCS and home equity loans are usually available at relatively low interest rates because they are secured by your home-which also makes them riskier for you. HELOC rates recently averaged 7.7%, according to Bankrate .com, and home equity loans averaged 7.8%. If you have a strong credit score (often 740 or above), that will help you qualify for a lower rate.

You can lock in the rate and the payments for a loan, but HELOCs usually have a variable rate-often tied to the prime rate that rises or falls as the Federal Reserve changes short-term rates, and you typically have the option to pay only interest on your debt for a number of years. To fight inflation, the Fed is expected to continue pushing up rates in 2023, although it may lower them if a recession takes hold. (For details on how HELOCS work, see the box at right.)

How to use a HELOC. You can draw on your home equity for just about anything to buy an investment property, finance education expenses for your children or invest in your own business. But the most common (and often the most beneficial) uses of a home equity line of credit are home improvements and debt consolidation.

Diese Geschichte stammt aus der April 2023-Ausgabe von Kiplinger's Personal Finance.

Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.

Diese Geschichte stammt aus der April 2023-Ausgabe von Kiplinger's Personal Finance.

Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.

WEITERE ARTIKEL AUS KIPLINGER'S PERSONAL FINANCEAlle anzeigen
MAKING A DIFFERENCE IN THE LIVES OF DISABLED VETERANS
Kiplinger's Personal Finance

MAKING A DIFFERENCE IN THE LIVES OF DISABLED VETERANS

He suffered grave injuries in the line of duty. Now he helps other veterans who have disabilities.

time-read
2 Minuten  |
November 2024
DO YOU NEED UMBRELLA INSURANCE?
Kiplinger's Personal Finance

DO YOU NEED UMBRELLA INSURANCE?

A policy can protect you from financially devastating events.

time-read
2 Minuten  |
November 2024
Navigating Finances as a Blended Family
Kiplinger's Personal Finance

Navigating Finances as a Blended Family

Money matters can get complicated when two families unite. Planning is key.

time-read
4 Minuten  |
November 2024
BREAKING UP WITH YOUR BROKER
Kiplinger's Personal Finance

BREAKING UP WITH YOUR BROKER

Be aware of these challenges when you move your money to a new home.

time-read
5 Minuten  |
November 2024
CHOOSE A MEDICARE PLAN THAT'S RIGHT FOR YOU
Kiplinger's Personal Finance

CHOOSE A MEDICARE PLAN THAT'S RIGHT FOR YOU

Consider your health care needs over the long term as you weigh costs and coverage.

time-read
9 Minuten  |
November 2024
Keep Faith in These Stocks
Kiplinger's Personal Finance

Keep Faith in These Stocks

IN 1997, I coined the phrase “faith-based investing.” It has nothing to do with religion or with picking stocks at random.

time-read
5 Minuten  |
November 2024
OUR ESG PICKS ARE THRIVING
Kiplinger's Personal Finance

OUR ESG PICKS ARE THRIVING

Despite an ongoing backlash, our favorite stocks and funds focused on environmental, social and corporate governance issues had a good year overall.

time-read
9 Minuten  |
November 2024
MONEY MANNERS FOR THE MODERN AGE
Kiplinger's Personal Finance

MONEY MANNERS FOR THE MODERN AGE

The customs for splitting a restaurant check, purchasing a wedding gift, tipping and more have evolved. These guidelines can help.

time-read
8 Minuten  |
November 2024
ELECTION 2024: POLITICS AND YOUR PORTFOLIO
Kiplinger's Personal Finance

ELECTION 2024: POLITICS AND YOUR PORTFOLIO

Who wins the White House matters—but only at the margins when it comes to your investments.

time-read
2 Minuten  |
November 2024
YOUR GUIDE TO OPEN ENROLLMENT
Kiplinger's Personal Finance

YOUR GUIDE TO OPEN ENROLLMENT

With health care costs on the rise, it’s critical to select a plan that fits your needs at the right price.

time-read
7 Minuten  |
November 2024