India Book :: Blog

10/31/2005

Home Equity Loan

Filed under: Business & Economy — Sarabjeet @ 2:55 am

A Home Equity Loan allows a home owner to borrow money by leveraging their equity, or the amount of money they have invested into owning their home. A Home Equity Loan can be either a fixed rate mortgage or an adjustable rate mortgage, and can be acquired as a lump sum or used as a revolving line of credit.

Equity is the difference between the home’s value and the balance on mortgage loan. Home equity loans are typically used for consolidating consumer debt or covering a large expense such as a big wedding, college tuition, or home renovations.

When a customer want to use a fixed amount of cash, he has to follow these steps:
Borrow up to 80% of your home value, based on your available equity.
Extended terms available.
Adjustable and fixed Rates.
Up to 100% of interest may be tax-deductible.
Speak with your tax advisor about potential tax advantages.

Home Equity Loan can be apply for debt consolidation, home repairs, medical bills, and big expenses like a child’s college tuition. Unlike other forms of consumer credit such as auto loans or credit cards, the interest on a Home Equity Loan is usually tax-deductible.

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