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Are there good and bad uses for a home equity loan?

April 26, 2017bad good home equity loan uses

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Are there good and bad uses for a home equity loan?

1 Answer

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10 Posted

Yes. Good reasons to take out a home equity loan are for debt consolidation, home improvements or to a pay for an education. In these cases your money grows. Poor reasons to take out a home equity loan are to buy luxury items or to fund living expenses. In these cases, your home equity is spent on something that depreciates.