Home Equity Loans

A home equity loan or regular second mortgage is used by many consumers to pay for home modifications. Unlike the reverse mortgage, however, a home equity loan does require a monthly mortgage payment.

Depending on the value of your home and how much equity you’ve accumulated, you can generally borrow anywhere from $30,000 to $75,000—though some banks will go higher. The loan amount and interest rate will depend on your annual income, past credit history, and other factors.

The proceeds from a home equity loan can either be taken as a lump sum or set up as a line of credit that you can draw upon whenever you want money.

The advantage of a home equity loan is a reasonable interest rate and the fact that interest paid on the loan usually is tax-deductible.