Home-equity loans are still one of the most popular ways for homeowners with a mortgage to borrow. With home equity loans, the interest is much lower than on other forms of consumer borrowing and, the best part is that the interest you pay on loans up to $100,000 is tax deductible. Contracostatimes.com reports:
If you're thinking about a home-equity loan, consider when you will need the money and how soon you will be able to repay it. Rising interest rates favor the fixed-rate terms of home-equity loans (now about 7.8 percent), but lines of credit may still be better for incremental expenditures like college since you pay interest only on the outstanding balance.
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