E-mail :

Password :

Forgot Password? | Sign up for Free

Three Reasons to Consider A Home Equity Loan

Posted by : Premraj | Posted on : Wednesday, August 20, 2014

home loan
SHARE THIS
FACEBOOK

Image Credit

When some added work needs to be done to the house, it isn’t always easy to find the necessary funds immediately. Despite saving, homeowners often find that the budget for their remodel project is much more than they have on hand. There are lots of different ways for a homeowner to come up with the necessary cash but many look to home equity loans to offer a solution. Here are three reasons to consider a home equity loan when the time comes to fix up the house.

Lower Interest Rates

Home equity loans tend to offer a more attractive interest rate for borrowing when compared to other options. Putting the cost of a remodel on a credit card can lead to a higher interest rate and fees if the balance is exceeded. Personal loans also tend to come with a high interest rate.

Home equity loans are usually the best option for low interest on a large amount. Depending on a person’s credit and the amount they plans to take out, it is possible to get a loan that is just slightly higher than the interest rate offered for a mortgage.

Possibility of a Tax Deduction

Most of the time a home equity loan is tax deductible. According to Turbo Tax, home equity loan interest is deductible provided that it was taken out after October of 1987 and it is secured by a person’s residence. Individuals looking to take out a loan soon are already halfway to qualification because of the loan’s start date.

For most homeowners, any tax deductions are a welcome addition when it comes time to file taxes. While it is always a great idea to talk to a tax expert for more detailed information, information is also available at http://www.moneytips.com/home-equity-loans-line-of-credit.

Easier to Qualify For

Remember the process required to gain approval for a home loan? Apply for a home equity loan still requires some of the same information but it is usually much easier to qualify for. Individuals that have less than stellar credit still have a chance to take out this type of loan.

Already have a home equity loan? According to USA Today, there are ways to refinance a home equity loan that could sweeten the deal even more. If there is a lower interest rate for this type of loan, it can be refinanced and lower the overall cost a person pays for borrowing the money.

There are a lot of great ways to take advantage of a home equity loan. The money can be used for the home, to pay off other debt or even to put a child through college. Unlike other loans, the rates are often lower, the loan itself is easier to qualify for and the interest could be tax deductible. Before raiding the savings account or taking out a personal loan, look into the various advantages that come with a home equity loan.

Comments : Post a Comment | Category : Mortgage, Personal Finance, Planning, Saving Tips | Tags :
How to Sell a Car For Quick Cash

 Image Credit Managing a household can be pricey from time to time, and now and then things can get away from you. Whether you have a sudden home emergency or an unexpected medical issue, there are times when you’ll need some cash right away. When that happens it might become necessary to sell some possessions [...]

Read More >>

ccard

It is an inevitable truth that every country has its way of determining the credit worthiness of the individual citizen. However, if you want to know more about the perfect credit score related with your country, you can try and highlight the special level of financial responsibilities. On the other hand, as per the latest [...]

Read More >>

Accounting

Managing household finances isn’t easy. In fact, many people don’t actually learn how to manage their money; they figure it out through trial and error. Unfortunately, trial and error usually means lots of error, resulting in serious financial trials; and one of the biggest financial errors you can make is getting overextended. The bad part [...]

Read More >>

What is Bankruptcy Exactly

You were a high roller. You lived large. You did it your way. And you never, ever left home without it. Then the bills came in. It started with your home phone. Well, you were tired of hearing it ring anyway. Then it was the cell phone, then the cable, then the lights. When you [...]

Read More >>

894035077_e11024cac2

Credit cards have received bad publicity in the past few years. However, they still remain one of the best ways to shop from day to day. Credit cards offer various benefits to their users including those listed below. 1.       Security Credit cards are a great way to always have money with you without the fear [...]

Read More >>

Break your big budget items to small line items

When in need of fast cash, then the first that will cross your mind is that of personal loan. Unlike the other forms of loan as the home loans or the car loans the amount that you receive as part of the personal loan can be utilized in a number of activities. With this money, [...]

Read More >>

How to save money on insurance of your new car

Car insurance is a must for everybody who owns a car. Most of the people are not aware of this. But, if you are in the market and looking to buy a new car, you will have to have auto insurance before you drive your vehicle. You should let the insurance companies know about your [...]

Read More >>

Accounting

We’d all like to believe we’ve got a good control over our finances until those unexpected moments hit and we’re sent scrambling to get things in order. These little wakeup calls let us know that we could be doing something better with our personal finance. The following apps will make it easier for you. They’re [...]

Read More >>

Financial Solutions

Many people are looking for ways to try to make a little bit of extra money these days to offset the rising costs of food, fuel, and other necessities. But how about the money you already have in the bank; The money already stored in your savings account, or the money in your checking account [...]

Read More >>

How to fix a bad credit score

In the wake of an economic scenario plagued by plummeting credit scores, million of outstanding debts and soaring prices, it has become all the more important (more than ever before) to analyze your finances. Your credit scores account for a crucial part of your finances as your chances of securing loans and insurance are dependent [...]

Read More >>

Free Budgeting software to better manage your money

Register for FREE, Learn More or Watch the Video