Tappable equity is the amount most lenders will allow you to take out while still leaving 20% in the home as a cushion.
How to tap your home for cashAlternatively, a home equity loan is a type of second mortgage, which allows borrowers to pull cash while using the house as collateral.
However, the current average home equity loan interest rate is 8.52%, according to Bankrate, notably higher than a 30-year fixed-rate mortgage.
watch nowOtherwise, a home equity line of credit, also known as a HELOC, lets you borrow money against a portion of your home's equity.
The average HELOC interest rate is just shy of 10%, according to Bankrate.
Persons:
Jacob Channel, Andy Walden, Holden Lewis, Lewis
Organizations:
Louis Federal Reserve, Intercontinental Exchange's Mortgage, Intercontinental Exchange