Home equity loans are pretty straightforward: You borrow money against the amount of equity you have in your home. Equity is the difference between the market value of your home and what you owe on your mortgage. For instance, if the market value of your home is $150,000 and you owe $100,000, you have $50,000 in equity.
There is usually a lot of flexibility in how you use a home equity loan. Keep in mind: If you are thinking of selling your home in the near future, the home equity loan would be paid in full at the time of the sale.
Here are 10 reasons to consider tapping into yours:
1. Funding a student loan for yourself or your child
2. Making home improvements and upgrades
3. Paying off or consolidating credit card debt
4. Paying medical bills
5. Funding a vacation
6. Making key purchases such as a car or a truck
7. Paying for weddings or important celebrations
8. Funding investments
9. Starting a business
10. Set aside for an emergency fund
Do you want to know more about home equity loans or how you can make the equity in your home work for you? Get the details on U.S. Bank rates for home equity loans.