To borrow a lump sum for a one-time expense, choose a home equity loan, also known as a second mortgage. You’ll benefit from a low, fixed rate for up to 15 years and make fully amortized (interest-plus-principal) payments for the life of the loan.
A home equity loan might be right for you if:
You know how much money you need to borrow and only plan on using the funds once. You may use your home equity loan to:
- Improve your home
- Consolidate your debts
- Pay for college tuition
- Buy a car
- Fix your rate