Additional Information
How Much Can You Borrow?
The amount you qualify for depends on your home’s value, how much you still owe on your mortgage, and your lender’s guidelines. You may be approved for more than you need, but it’s smart to only borrow what you can comfortably repay.
Example:
If you qualify for a $100,000 loan but your kitchen remodel will cost $40,000, it’s wise to borrow only the $40,000. This keeps your payments manageable and your long-term debt lower.
Choosing the Right Loan Term
- Shorter Term (10 years): Higher monthly payments, but you pay off the loan faster and pay less interest overall.
- Longer Term (20–30 years): Lower monthly payments, but more interest paid over the life of the loan.
Advantages of a Home Equity Loan
- Fixed Interest Rate – Predictable payments for easy budgeting.
- Lump-Sum Funding – Access all the money at once for large projects or expenses.
- Possible Tax Deduction – Interest may be deductible if the loan is used for home improvements (consult a tax professional).
Considerations Before You Borrow
- Your home is collateral — if you can’t repay, you risk foreclosure.
- Taking on too much debt can strain your budget.
- Consider whether a home equity line of credit (HELOC) or cash-out refinance might better suit your needs.
Is a Home Equity Loan Right for You?
If you need a one-time lump sum for a major expense and prefer fixed payments, a home equity loan may be the perfect fit. I’ll help you calculate your available equity, review repayment options, and find the best loan terms for your situation.
