If you need money to pay bills or make home improvements and think the answer is to refinance or to take out a second mortgage or a home equity loan, just make sure you consider your options carefully.
The equity in your home is a valuable asset that can be leveraged – and a variety of loan programs and options exist to help you tap into that equity if needed. Contact your lender to ask about the best options and which types of loans you’d qualify for.
Generally, the lender will give you a written “good faith estimate” that shows all charges and fees you’d have to pay at closing, as well as a “truth in lending” disclosure that shows all the loan’s terms.
Make sure you talk to an attorney, financial advisor, or someone else you trust before you make any decision about borrowing money using your home as collateral. Keep in mind, if for some reason you can’t make the payments in the future, you could lose more than just the equity you had built up… you could lose your home.