Home Equity Loans: A Viable Option for Homeowners Despite Rising Interest Rates

Experts suggest homeowners with significant equity could benefit from home equity loans, even as interest rates rise.

Home equity loans are relatively easy to get as long as you meet some basic lending requirements, including an 80% or lower loan-to-value (LTV) ratio, a credit score of 620 or higher, a debt-to-income (DTI) ratio lower than 43%, and proof of income.
Home equity loans can be used to pay off high-interest debts such as student loans or credit card debts, as they typically offer lower interest rates.
Despite rising interest rates, experts suggest that now might be a good time to take out a home equity loan, especially if you have a significant amount of equity in your home.
However, home equity loans might not be a good idea if you plan to sell your house soon, if your credit score is low, or if your income is unstable.
Homeowners are advised to shop around for the best rates and terms, and to only borrow what they need to avoid unnecessarily high payments.