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How to Use Home Equity to Your Advantage: Loans, Refinancing, and More

Home equity is the portion of a home's value owned outright, built by paying down the mortgage and home appreciation. It can be accessed via home equity loans (fixed lump sum with predictable payments), HELOCs (revolving credit with flexible borrowing), or cash-out refinancing (replacing the mortgage with a larger loan). These options fund home improvements, debt consolidation, education, or investments but carry risks like foreclosure and increased debt. Careful financial assessment is essential before borrowing.

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Daulton Ehlen

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