Are you looking at borrowing against the equity in your house right now? Chances are good that you are, given that it’s really a lump sum that you can use for any purpose. Even if you wanted to borrow the money and then go on your dream holiday, there’s really nothing that would stop you other than your own financial goals and desires. Yet borrowing against the equity in your house isn’t something to take lightly. As you might imagine, if times get rough and you have to suddenly default on the loan, you will be putting your home at risk unless you can make alternate arrangements.
You also don’t want to just jump on the home equity loan idea. Honestly, you should be looking at a remortgage vs. home equity loan situation. This means that you’re going to have to crunch the numbers on both and then go with what’s going to actually benefit your situation the most. Don’t get caught up in what someone else thinks, or what your friends think. Your friends aren’t the ones that are going to have to make those monthly payments are pay those closing costs. You’re the one that’s going to have to do that. So why not listen to yourself? Now, there’s nothing wrong with getting other opinions, especially from homeowners that have already been through this process. You have to try to get as much information as you honestly can if you really want to make the best decision in the long run.
What about looking at multiple quotes? This is something that you really want to do, but make sure that they are truly the most equal quotes that you can find. We can’t tell you how many times people went on price only, only to find at closing there were a lot of fees that they weren’t prepared for. Unless you already have the savings stocked up in advance, hidden fees can kill the deal completely and leave you without the money you were planning on having in the first place. That just doesn’t sound like a good position to be in at all, now does it?
What you will need to do from here is just chew over the information on your own. We’re serious — getting the money to make your dreams come true is great, and when you have the right plan borrowing against the equity in your home is a good idea. However, having that plan is really important — don’t skip over the details!