1. Transform many bills into one
Debt consolidation is by far how most home owners use home equity loans. It can also be the riskiest way to use the home equity loans.
2. Put the home equity money back
Almost as common as debt consolidations are home equity loans used for home improvements. With carefully planned and professionally completed work, homeowners effectively put home equity loans back into the home by adding more square footage, by bringing the home up to current building codes and by upgrading to contemporary home design and features
3. Invest home equity funds in your kids
Using home equity loans for education is another popular choice, what with the skyrocketing costs of post-secondary education and higher incomes that don’t qualify for special grants and government-backed loans.
4. Disposable goods and services
No matter what you do with your home equity money you can deduct the interest and that’s a compelling reason to use the home equity loans to buy those big-ticket items you’ve always wanted, a new car, boat, recreational vehicle. Home equity loans are also a godsend if you are hit with big medical bills or some other emergency.