Get More Cash With Traditional Home Equity Loan
How to Qualify for a Home Equity Loan
Qualifying for a home equity loan generally requires that you have a significant amount of equity built up in your home, typically at least 15-20%2. Lenders will also evaluate your credit score, income, and debt-to-income ratio to determine your eligibility. A strong credit score and stable income can improve your chances of securing favorable loan terms.
Real-World Examples and Data
In 2023, the average interest rate for a home equity loan ranged from 6% to 8%3. This rate is competitive compared to other forms of credit, providing a cost-effective way to access funds. For example, if you have $100,000 in equity and borrow $50,000 with a 7% interest rate over 10 years, your monthly payment would be approximately $580, making it easier to budget for your financial goals.