The most significant advantage of a home equity loan is that it carries a low rate of interest. However, this benefit comes with a drawback. If you can’t repay your home equity loan, the lender can take away your house and sell it to recover its dues.
How do you propose to repay the home equity loan? If you’re sure you’ll have the money to pay the lender, go ahead and use this source of finance. But don’t forget that you could lose your home if you don’t repay.