Home Equity Loans and HELOCs Can Help Financially, Including for Small Business Owners

Homeowners with at least 15-20% equity in their property can use home equity loans or HELOCs to manage financial setbacks, consolidate debt, pay for crucial home repairs, and even fund small businesses, but caution is advised due to the risk of possible foreclosure in case of non-payment.

• Homeowners with at least 15-20% of home equity can utilize home equity loans or lines of credit (HELOCs) for numerous financial purposes including debt consolidation and covering business expenses.
• The use of home equity loans or HELOCs includes making crucial home repairs or improvements, which can in turn increase the value of the property and even help repay the loan itself.
• Home equity loans or HELOCs can help to consolidate various forms of debt into a single loan, potentially saving money by securing a lower interest rate.
• In times of financial emergencies, homeowners can resort to home equity loans or HELOCs for necessary expenses such as medical emergencies or unexpected car repairs.
• Moreover, small business owners or aspiring entrepreneurs can utilize home equity loans or HELOCs as a seed funding source. However, due diligence is advised given the high failure rates of small businesses and the potential risk of foreclosure in the event of non-payment of the loan.

3 Articles

CBS News CBS News CBS News