3 considerations when deciding whether to get a HELOC, sell property, or enter an equity sharing agreement
Deciding whether to get a home equity line of credit (HELOC), sell your property outright, or enter into an equity sharing agreement is a big decision. Here are three factors to consider before making your choice.
1. How much equity do you have in your home?
If you have a lot of equity in your home, you may be able to get a HELOC with a low interest rate. On the other hand, if you have very little equity, you may not be able to get a HELOC at all. In that case, selling your property outright or entering into an equity sharing agreement may be your best option.
2. How much debt do you have?
If you have a lot of debt, getting a HELOC could put you at risk of foreclosure if you can't make the payments. Selling your property outright or entering into an equity sharing agreement may be a better option if you're trying to get out of debt.
3. What are your long-term goals?
Are you planning on staying in your home for the long haul? If so, getting a HELOC may be the best option for you. However, if you're planning on selling your home in the near future, selling it outright or entering into an equity sharing agreement may be a better choice.