Are you using your home like a piggy bank? Have you been considering borrowing against your home’s equity?
If you paid cash for your house, or if you’ve built up equity while paying off a mortgage, you probably realize a good chunk of your money is tied up directly in your home. In fact, having tens or even hundreds of thousands of dollars in your home’s equity is entirely possible.
So no wonder many people are tempted to treat their homes like a money spigot and extract some of that cash to spend. Taking out a home equity loan (HEL), home equity line of credit (HELOC) or reverse mortgage may seem like a good idea on the surface. But there are serious dangers lurking behind each of these financial vehicles.
How People Get Money Out Of Their Homes