How Does a Home Equity Loan Work? (2024 Guide)

Taking equity out of your house can be a good idea for home improvements, high-interest debt consolidation, essential expenses or education. However, it’s not advisable for non-essential spending, as it carries the risk of losing your home. Carefully assess your financial goals, income stability and market conditions before tapping into your home’s equity. Consider consulting a financial advisor for more guidance before making a decision.