What is a home equity loan?
A home equity loan is a financial product that allows a borrower to use a portion of the market value of a home as collateral for a loan.
Flexibility Advantages
You can use your home equity loan or line of credit for anything now, or in the years to come! Here are a few ideas to get you started:
- make home improvements
- buy a new car
- take a long awaited vacation
- consolidate bills
- pay for school tuition
- and much more!
Low Interest Rate Advantages
Because your credit limit is tied directly to the equity in your home, the interest rate on those funds borrowed is very attractive.
Tax Advantages
Home equity loans still share the same tax advantages as mortgage loans. This means you could possibly deduct up to 100% of your interest payments on a home equity loan or line of credit from your taxes. As always, confirm the deductibility of this interest with your tax advisor.