2 safe ways to use home equity this December (and 2 dangerous ones)
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. There are safe and dangerous ways to use your home equity funds this December. Getty Images When used properly, home equity can provide a vital financial lifeline for homeowners in need of extra funding. Whether it be with a home equity loan , home equity line of credit (HELOC) or other source, home equity can provide homeowners access to a large, six-figure sum of money, often at an interest rate many points lower than what would be available with popular alternatives. And with the average homeowner in possession of around $319,000 worth of equity, according to the November 2024 ICE Mortgage Monitor report, there’s likely plenty of money to use both now and, potentially, for additional expenses in the future. That noted, using your home equity needs to be a carefully considered decision, approached strategically. If you’re unable to repay all that’s borrowed you could risk your homeownership as the property serves as collateral in these exchanges. Understanding this risk, then, it helps to know