5 responses to “Home equity loan?”

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  Jedi Master YODA February 24th, 2010 at 08:22

  EZRA

  A great question and idea to payoff your FIRST MORTGAGE with a HE Line of Credit (HELOC).

  However, you may ONLY want to payoff your revolving debt like installment loans, cars, credit cards FIRST!

  Why? You get a tax break when you PAY interest for a Mortgage Loan or Home Equity Loan or Line of Credit.
  Do you need the tax deduction?

  Is your home appreciating in value?

  You can visit your local Banker and make an appointment for a FREE Financial Review of your financial matters. A good Banker will make a great recommendation.

  HE LOAN: Lump sum secured by primary residence or rental property.

  HE LOC: Line of Credit, open ended with a credit limit, you can access the funds by check, w/d at the branch, online transfers, debit card at some banks like Wells Fargo and Bank of America. Convenient Access, Revolving Line of Credit. Variable payments based on an index x the rate.

  A tax accountant can also give you help.

  Again, Loans secured by Real Estate the interest paid you can itemize and use the interest as a tax deduction (SAVING) you money from Uncle Sam.

  GOOD LUCK!

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  David S February 25th, 2010 at 08:21

  ANDREW

  Why don’t you just refinance your first mortgage to do this? Home equity loans (i.e. second mortgage) typically have higher interest rates than refis. The interest on a first mortgage is tax deductible, too. Depending on your current first mortgage balance, refinancing may be the better option.

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  old_woman_84 February 27th, 2010 at 03:17

  ALI

  I do know that you can take the interest off of taxes. It might be simpler for your payments. Check it out. Talk to your bank. Just make sure you go through a reputable institution.

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  See Saw February 28th, 2010 at 08:55

  DANA

  A home equity loan line of credit operates similar to a credit card. You can borrow up to a specific limit during the duration of the loan. The time limit is generally decided by the institution lending the amount. Within that time frame you can borrow money as per your necessity to pay for things that you require. As you go about repaying the principal, your credit revolves, allowing you to borrow again if necessary. Credit line is more flexible than a term home equity loan.

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  Andrew R March 1st, 2010 at 23:08

  CASEY

  A home equity loan is a loan that is paid on top of your mortgage. If you want to pay off your mortgage, pay off your truck and a possible cash out and get a good interest rate then you need to refinance. We do this type of combination loan all the time. And yes anything financed into/by your home is tax deductible on the interest, On the average my clients save $700.00 or more a month. How much you can save might be different. It is great to save money and have a write-off at the same time.