Home equity loans have become Custom Home Elevators so popular today because of increasing home values. A home owner can access money for consolidating debt, home improvements, a new car, education or starting a new business. Emotions can take the place of logic when considering a home equity loan.

Asking yourself, “Is a home equity loan right for me?” is the first and most important step to take.

Home equity loans have become so popular today because of increasing home values. A home owner can access money for consolidating debt, home improvements, a new car, education or starting a new business.

Emotions can take the place of logic when considering a home equity loan.

It’s a good idea to sit down and take your time before signing up. Educating yourself will benefit you in the long run.

A home equity loan is like having a second mortgage on your home. Suppose your home is worth $200,000, and you have a mortgage against it at $150,000, you will have $50,000 of equity available. Home equity loans allow you to borrow up to 80%, and sometimes more in certain situations, of your homes value. In this situation you could borrow $80,000 as a home equity loan and still have only borrowed 80%.

This is why it is so important to take a good look at your situation before making a decision. You can see how easy it could be to get carried away with a home equity loan.

The second step should be to get an idea of what your home is worth in today’s real estate market. You can look at what others in your area have sold their home for. A realtor can help you with getting an idea of your homes fair market value. Be sure to get a few quotes because some realtors may be interested in inflating your home value in hopes of earning your business.