| tart --> | | | | way around this is to get your home's price |
| Home equity loans are secured with the value of your | | | | reassessed to current market value. You always have |
| home so you qualify for low rates. By selecting a | | | | the option of cashing out 100% of your equity, just plan |
| home equity loan rather than a cash out refi, you save | | | | on higher rates. |
| on closing costs and application fees. And just like with | | | | Tax Consideration |
| your first mortgage, home equity interest can also be | | | | Unlike credit card or personal loan interest, home equity |
| used as a tax deductible in some cases. | | | | loan interest can be written off in some cases. In order |
| Lower Rates, Lower Fees | | | | to take advantage of this rule, you need to be able to |
| Secured loans, like mortgages, are cheaper than | | | | itemize your deductions. Interest on loans of $100,000 |
| unsecured loans, such as credit cards. Home equity | | | | or less qualifies. Other restrictions apply, so check with |
| loan rates are usually 1/3 to 1/2 of unsecured loans | | | | the IRS or your tax accountant. |
| rates. That means that your payments are smaller and | | | | Better Loans With Research |
| for a shorter period. | | | | To find the cheapest rates and fees, take some time |
| Home equity loan application fees are also cheaper | | | | to investigate lenders. By using the internet you can |
| than a refi's closing costs. Since the loan amount is | | | | quickly sort through posted home equity loan rates. For |
| smaller, many of the loan fees are waived or | | | | more accurate numbers, request a loan estimate from |
| eliminated. Closed home equity loans do have some | | | | a number of lending companies. |
| application fees, but most lines of credit don't. | | | | When looking at a loan offer, ask about the fees as |
| Keep 20% Equity For Lower Rates | | | | well. Home equity loans may have annual fees for |
| By keeping 20% of your home's equity intact, you will | | | | processing or keeping a minimum balance. Also ask |
| qualify for lower rates on your home equity loan. One | | | | about how long rate quotes are good for. |