BY ARAM ANTHONY
Explore your options HELOCs and personal loans explained
ODDS ARE YOU’LL FIND YOURSELF needing access to more cash than you have on hand at some point. That’s just life. Whether you want to fund a home renovation project, consolidate higher-interest debt or cover unexpected expenses, there are several ways you can borrow the money you need.
Two of the most popular ways to borrow money are home equity loans (which can include a home equity line of credit, aka HELOC) and personal loans (secured and unsecured) 1 . Here’s a look at the pros and cons of each, as well as tips and tools to help you decide which one is right for you and your needs. HELOCs 101 Home equity loans are popular choices
lender has the option to foreclose on your property. California Bank & Trust offers HELOCs ranging from $10,000 to $2.5 million. If you think this type of loan is a good fit for you, use our home line of credit calculator to see how much you may qualify for. Personal loans 101
for homeowners looking to access significant amounts of cash. At their
If you aren’t yet a homeowner or don’t have sufficient equity built up to satisfy your borrowing needs, a personal loan can often be a good choice. There are a few varieties of personal loans to consider, including secured personal loans, unsecured personal loans and unsecured lines of credit: Secured personal loans. If you have a savings account or certificate of deposit, you can use those as collateral for a secured personal loan. One advantage this type of loan has over home equity loans is that you can borrow as little as $500, whereas the minimum for an equity loan is often as high as
core, they are loans secured by the borrower’s accumulated home equity. This gives home equity borrowers several significant advantages. To start, home equity loans can be significantly larger than personal loans, up to $2.5 million in some cases. They also often feature lower interest rates than personal loans. In addition, as a home equity borrower, you may be able to take advantage of certain tax benefits if you use the funds to complete qualifying home improvement or repair projects. One noteworthy disadvantage of home equity loans is that, in the event you default on the loan, the
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IN YOUR CORNER ISSUE 17 | 2024
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