Accessing your home equity? Here’s what experts say to avoid doing

Interest rates are high thanks to the Federal Reserve’s ongoing fight against inflation. While that’s nice for savings accounts, it’s not so great if you need to borrow money.

In fact, the average credit card rate right now is over 21%. Fortunately, not all financial products have rates that high. Home equity loans and home equity lines of credit (HELOCs), for example, offer rates that are much lower on average — typically between 7 and 10%.

If you own a home, these home equity products could be smart ways to get the cash you need without racking up sky-high interest costs. But if you’re considering taking one out this year, be sure to avoid these four mistakes before applying.

Accessing your home equity? Here’s what experts say to avoid doing

Here’s what experts say to avoid if you’re planning to borrow from your home’s equity:

 

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