DAYTON, Ohio (WDTN) — Looking for a home equity loan? Make sure you understand how it works and what you can do with it. Eric Ebbert with River Valley Credit Union shares what you need to know.
According to Eric, home equity is the difference between your home’s worth and how much you owe on it.
If your home is worth more money than what you owe, Eric said you can actually get a little money in your pocket!
You can use that money for anything you want, but Eric said the most common thing people use it for is home improvement. Oftentimes, home improvement can actually increase the value of your home, making your equity grow even more!
Other popular uses of home equity are debt consolidation, college expenses and emergency expenses.
Eric cautioned that you should plan out your payments, though, because home equity is basically putting your house on the line for such expenses.
For more information about River Valley Credit Union, click here.
You can learn more about home equity in the video above!
*This segment is sponsored by River Valley Credit Union.*