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A home equity loan or a personal loan - Which is better?

Submitted by Pedrocollins on Wed, 05/30/2018 - 00:24

If I have equity on my home, is it ok to take out a loan against the equity or is it better to take out a personal loan?

Hey! Why will you use your house as collateral? Isn't it better to borrow the amount from any friend or family. But, if you do so, make sure you repay the amount within a definite time.
However, if you want to take out a home equity loan, as others have told, you can get a better interest rate. It's nice. A property help you recover from unsecured debt.

Submitted by Ryan Miller on Thu, 05/31/2018 - 06:42

Ryan Miller

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Both loans offer some specific benefits. However, the personal loan comes with highest interest rates. By taking out a home equity loan, your monthly payments for the new loan will be lower.

However, for both personal loan and home equity loan, you need to pay a fee. So, it is advisable to compare the fees and interest rate before signing a new loan,

Submitted by Sanders Patricia on Thu, 05/31/2018 - 06:27

Sanders Patricia

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Home equity loan is a secured loan featured with lower interest rates and longer loan terms compared to the personal loans. Apart from that, you can usually borrow more money with a home equity loan than you can with a personal loan.

Submitted by tiarajoseph11 on Thu, 05/31/2018 - 06:26


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