Examples of major purchases
Large expenses may include appliances, accessibility improvements, family needs, travel tied to family events, equipment, or other planned purchases.
Separate needs from wants
Because home equity financing can be secured by your property, it is wise to distinguish necessary expenses from discretionary purchases.
Compare shorter-term alternatives
Savings, payment plans, personal loans, credit cards, or delaying the purchase may be better for smaller or discretionary needs.
Budget beyond the purchase price
Consider fees, interest, repayment period, future rate changes, and whether the purchase will still be useful long after payments begin.
Use a clear repayment plan
Set a target payoff timeline and avoid repeatedly drawing funds for unrelated purchases unless the budget supports it.
Frequently Asked Questions
Can I use home equity for a large purchase?
Some products allow broad use of funds, subject to partner approval and terms.
Is it smart to use home equity for discretionary purchases?
It depends on your budget and risk tolerance. Remember that home equity financing is generally secured by your home.
Should I request the maximum amount?
Not necessarily. A smaller focused amount may reduce payment pressure and interest cost.