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Home equity loans vs HELOCs: Both are seeing big growth. What that means. – USA Today

Are there good uses and bad uses of a home equity loan?

“It’s a great time to open up a home equity account, but just make sure that they have a clear vision of what they want to use and money for,” says Jeff Taylor, founder and managing director at Mphasis Digital Risk and board member at the Mortgage Bankers Association. “There are uses for HELOCs that make sense and those that could end up getting the borrower in worse shape.”

“Where I give caution is for people to take home equity line and go on vacation or buy a new car, what have you.”

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