If you've been comparing your loan options in today's economy, you're well aware that borrowing money comes with a hefty price tag right now due to interest rates being elevated across the board. What you may not realize, though, is that while the average rates on credit cards and personal loans are sitting in the double digits, there are still a handful of relatively inexpensive borrowing options available. And, one of the best right now is a home equity loan.
When you're confident you can make the monthly paymentsSince home equity loans require putting up your home as collateral, ensuring you have a reliable, sufficient income stream to keep up with the additional monthly obligation is crucial. Lenders will closely examine your income, debts and creditworthiness during the underwriting process, which is a good start for determining whether you can afford to borrow this way.