4 Good Reasons to Get a Home Equity Loan

Sponsored Content: Home equity loans enter you into an agreement with your chosen loan provider to stake the equity of your house against a lump sum of money to use in a number of ways.  

You've got several good reasons to leverage home equity for investment possibilities. 

Benefit from a Favorable APR & Low Fees 

Home equity loan rates tend to be lower than credit card or personal loan interest rates. Low annual percentage rates for the term of a loan, as well as minimal, sometimes zero, upfront fees, could be incentive enough to invest in your next car or renovation project. Some lenders like Discover® Home Loans offer a closed-end installment product which has fixed home equity loan rates for the life of the loan.  

Access More Money 

Your home has inherent value. Loan providers who offer home equity loans will calculate the value of your home, including how much you've paid off your mortgage, and set your borrowing amount, APR, and term duration limits based on this calculated value. 

In fact, some providers will loan you up to 90% of your home's value!  

Consolidate and Refinance 

If you've got debt that's accumulating and need some relief, lenders can help structure some of your larger debts into payments that can be spread out more evenly over the course of time through a low APR home equity loan. 

With a fixed APR that lasts for 10, 15, 20, or even 30 years, you can feel confident that you know what your debt repayment plan looks like for the future. 

Pay for What You Want 

Completing projects around the house or investing in higher education could be done down the road when you have more money in hand, but how are you to know that these investments aren't going to be the exact catalyst that raise your overall net worth? Using home equity loans to fund these dreams in the here and now might boost your overall wealth in ways you didn't expect. 

Source: Discover Home Loans

About Discover Home Loans

Discover Home Loans provides home equity loans and mortgage refinance options with a range of benefits for qualified homeowners. Find options that fit within your budget at discover.com/home-loans. ©2023 Discover Bank, Member FDIC | NMLS ID 684042


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