Personal Loan vs Home Equity Loan
Big financial decisions like remodeling your home or getting rid of credit card debt, can feel overwhelming. But there are some simple, affordable options for meeting these goals head-on.
Using a personal loan or a home equity loan for significant expenses can be two possible paths forward. Our infographic lays out the features of home equity loans and personal loans so that you have some additional information while considering which loan type would be suitable for you.
Conduct due diligence before choosing a loan type
Taking out a big loan can be a big deal. Whether it's a personal loan or a home equity loan, do a bit of research first:
- Determine how much you need
- Gather existing bills and debts
- Write down your assets
- See what payment amount you can afford
- Talk to a financial planner about your options
Examine the benefits of each. Personal loans tend to have low fees, fast approvals, and quick cash. Though all that sounds pretty good, home equity loans normally have low interest rates, but also offer larger loan amounts and afford possible tax breaks (consult your tax advisor).
Discover® Home Loans offers home equity loans from $35,000 to $300,000 without application, origination, or appraisal fees, and no cash is required at closing.
Choosing between a personal loan and a home equity loan depends on your financial needs. Take the time to find out as much as you can about each loan before you make a decision, and set yourself up for success for whatever you want to accomplish.