Advantages of Home Equity Loan
1. Easy Source of Cash: Home equity loans offer an easy source of cash and can be a beneficial instrument for responsible borrowers. With fixed source of income and capacity to repay the loan, low-interest rates and feasible tax deductions make the home equity loans appear to be a good measured choice.
2. Budget friendly and Easy to avail: Fixed rates help in determining the payment which makes budgeting easier. Further, as home equity loan is a secured loan, the lender only checks the creditworthiness of the borrower and the CLTV to disburse the loan to the borrower.
3. Lower Interest Rates: These loans offer a lower interest rates compared to other personal loans or credit cards. Hence, consumers avail this loan against their homes as collateral to pay off credit card dues. Further, if the loan availed for home renovation or improvement, the interest get deducted.