For many clients, their home is one of their largest financial assets. But they may not realize how it can be used to support their financial goals. Whether a client is navigating a large expense, considering home improvements, or looking to consolidate debt, it’s important to evaluate which home equity strategy, if any, may make sense for their situation.

This summary guide helps facilitate your conversations with clients who are exploring ways to tap into their home’s equity, and covers:

• Home Equity Line of Credit (HELOC)
• Home Equity Loan
• Cash-Out Refinance
• Key differences in payment terms, interest rates, and borrowing limits
• Considerations like underwriting requirements, closing costs, and repayment structures