Borrowing on Home Equity
If you need extra money for projects such as a home renovation, or if you want to consolidate debts that have higher interest rates, one solution is to borrow using your home equity as security. Your home equity is the difference between the value of your home and the unpaid balance of any current mortgage. Your home equity increases with time as you pay your mortgage down and as the value of your home increases. If you are looking for a loan, you will often be offered a better interest rate if the loan is secured by your home equity.