SALT LAKE CITY — If you are a homeowner, you may be sitting on a nest egg, money that can be accessed for any reason your personal situation warrants.
Intercontinental Exchange, Inc. recently released its mortgage monitor report, and it shows the average homeowner has $207,000 in tappable equity.
If you are in a situation where you need cash instead of looking at credit cards and personal loans, Dave Nellis with America First Credit Union tells me you may just have a better choice. Your home could be a cash cow with interest rates that are hard to beat.
"It may be one of the best options that you have. It could offer you some of the lowest interest rates that are being offered out there." Nellis says, "If you compare a credit card interest rate to a home equity interest rate, by far that home equity is going to be more advantageous for you."
To put that into real numbers for you, the average home equity loan interest rate is 8.41%, almost three times lower than the average credit card interest rate of 23.37%. Throughout a 10 or 15-year payback schedule, those savings in interest on a home loan over a credit card loan could potentially be thousands of dollars.
To get the ball rolling and see how much cash you can pull out of your home and how much your mortgage would increase for the payback, you can call your mortgage company or go into your bank or credit union to get guided advice on a home equity loan.
