Should you borrow against your assets?

Borrowing against your assets may also come with additional risks, since the assets need to maintain a certain amount of value for the duration of your loan. "In general, this type of leverage should be used when you're confident you can repay the loan quickly,” says Lou Gentile, advanced planner at Fidelity.

What happens if you borrow money against your home equity?

As is the case whenever you borrow money, you'll have an interest rate attached to that loan so that your lender gets some money out of the deal. The interest you accrue will therefore add to the cost of your loan; if you borrow $20,000 against your home equity, you'll wind up paying back more than $20,000.

Should I borrow against a hard asset?

Another option is to borrow against the value of a hard asset, usually your home, or a portfolio of securities. Borrowing against assets can offer potential benefits including a minimal or streamlined application process and the potential for favorable interest rates.