I’m sure you’ve heard of home equity loans – nearly everyone who owns their home has taken out some sort of home equity loans, and although they’re not perfect, there are many advantages to home equity loans.
The biggest advantage for most people is that you can choose to spend the money when ever you want, be it next week, next month, or next year, and you can use the money you get from home equity loans on anything – a vacation, a new car, remodeling the house. What ever you want, you can get it with the money.
The interest on home equity loans is tax deductible, which is a huge plus for many. Up to $100,000, or the equity of your home – which ever is lower – is tax deductible. If you want to know the details, discuss this with a tax adviser, who can tell you more.
Many don’t get a loan because of the massive interest rates. With many home equity loans, the interest rate is lower then credit cards, or consumer loans. If you’re searching for a good loan with low interest, you may want to consider seriously looking into home equity loans.
Most home equity loans have a shorter pay period than traditional mortgages – some are up to 30 years, but most can be 5, 10, 15, 20, or 25 years, depending on your financial situation and the amount you’ve borrowed. This is perfect for those who don’t want to be tied down for the rest of their life by a second mortgage.
As I said earlier, home equity loans aren’t the answer to everyone’s needs – perhaps you have a lower income, and can’t qualify for any home equity loans, or simply don’t have the money to front the cost. A more traditional loan may be better for you.
But for many, home equity loans are a great answer to needing extra money to pay college bills, remodel a house, or fund a vacation. Maybe home equity loans are the right answer for you, too.
Tuesday, 4 March 2008
The biggest advantage of home equity loans
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