Home equity loans are an important part of the financial world. They help families and individuals take the equity they’ve built up in their home and use it for something else. It is very much like a traditional loan, where there will be interest charged and you will need to make monthly payments. Here are some uses for a home equity loan from the Ardent Credit Union, which is a premier federal credit union in Pennsylvania .
Home Improvements
Have you always wanted to update your kitchen or master bathroom? Now is the time with a home equity loan. You can use the equity you’ve built in your home and turn it around to make improvements, which will only increase the value of the home.
College
If you have a high school aged teen preparing to go off to college, you might consider taking out a home equity loan to pay for some of the tuition. You might be able to obtain better interest rates this way than applying for education loans. You can also use the loan to pay for room and board, food, books, or anything else necessary.
Buy a Car
If you don’t want to go the route of financing for a new vehicle purchase you can use a Credit Union home equity loan to pay for the car. Combine the loan with the money you get from trading in your previous vehicle and you might not have to pay a dime out of pocket.
Pay Credit Cards
If you’ve found yourself in some credit card debt, you can use the equity in your home to pay down the debt. Even though you would be using a loan to pay down another type of ‘loan,’ it’s better to have lower credit card balances than high ones.
If you need money for a home improvement project or to buy a car, consider a home equity loan.