Share buttons

Is Now the Right Time to Get a Home Equity Loan?

Man and woman dancing in the kitchen

Home equity is the difference between your home’s market value and what you still owe on your mortgage. This equity can act as collateral for a home equity loan or home equity line of credit (HELOC). Both options provide funds to renovate your house, consolidate debt, and even pay college tuition. You receive a lump-sum upfront and make monthly repayments with a home equity loan. With a HELOC, you use funds as needed and repay as you use them. So is now the right time to get a home equity loan?

The Best Time for Home Equity Loans

In a third of all ZIP codes, more than half of properties are considered equity-rich. Median home value has increased 2%, setting a record high and increasing many homeowners’ equity. This means that now is one of the best times to consider a home equity loan or home equity line of credit. You may have the best home equity to date, and you could be approved for the best line of credit or loan because of it. But there may still be another option: refinancing.

Home Equity Line of Credit vs. Refinancing

Experts expect the housing market to moderate later this year, meaning equity will level off, too. If your home isn’t as equity-rich as you’d like, refinancing your home can shorten the length of your mortgage and provide lower interest rates. Refinancing also provides a very low interest rate compared to home equity loans and HELOCs. You can use the Horizon Mortgage Refinancing Calculator to explore this option further!

Home equity, lines of credit, and refinancing can be confusing. But your home is an investment, and you should leverage it! Contact the Horizon team to learn more about home equity loans.

Contact us View our current home equity rate

 

 

The web site you have selected is an external site not operated by Horizon Bank. This link is provided for convenience and informational purposes only and Horizon does not endorse and is not responsible for the content links, privacy policy or security policy of this website or app you are about to visit.  Horizon Bank is not responsible for (and does not provide) any products, services or content for this third-party site or app, except for products and services that explicitly carry the Horizon Bank name. Click Proceed to continue or Cancel to go back.