Choose the use of funds
Know the amount and whether you need a one-time advance or ongoing access. Avoid borrowing more simply because equity appears available.
Compare structures
Ask about rate type, required payments, permitted prepayments and what could cause the lender to change or demand repayment.
Include every cost
Request a written payout statement and estimate appraisal, legal and discharge costs. Compare net proceeds after those costs.
Review the long-term effect
A lower payment can come from a longer amortization. Check the projected balance at the end of the term, not only the monthly savings.
Put the guide to work
Prepare your documentsGeneral educational information. Your lender, legal and tax requirements may differ.