Erik Schmitt, Executive at Chase Home Lending Consumer Direct, reminisces about the chaotic economic landscape that erupted in 2020 amid the COVID-19 outbreak. “The housing market and wider economy were rife with uncertainty,” he notes. As a result, giants like Chase and Wells Fargo hit pause on their home equity lines of credit (HELOCs), reflecting…
Key Insights to Consider Home equity loans and HELOCs generally provide access to larger sums at interest rates well below those of credit cards or personal loans. Popular—and often wise—uses of home equity include funding home upgrades, consolidating debts, and handling unexpected expenses. Though permissible, dipping into home equity for non-essential splurges is usually ill-advised….