For many people, a home equity loan meets the necessary requirements for borrowing money. Although no one likes to go into debt or owe money, there are times when it is convenient, or even necessary, to borrow money. The key is to find a way not only to get the cash you need, but also to get it on terms that work to your best advantage. A home equity loan can often be tailored to meet your individual needs. If you're wondering if a home equity loan might be for you, Bright points out the most common reasons people get one.
Debt consolidation is the number one use of a home equity loan.
Home improvement is the second. This hasn't always been the case. Texas has only recently passed legislation that removes the restrictions on what loans may be used for. Now home equity funds can be used for any reason. There are two basic types of home equity loans.