Home Equity Loans

What are they?
Loans made to homeowner secured by mortgage on the property.

* A line of credit borrowed against your home’s value. These aid from an impaired credit history. The balances, which amortize over a specified number of years, and require the payment of principle and interest.
* Using the equity in your home, you may qualify for a sizable amount of credit at an interest rate that is relatively low.
* Also know as a Second mortgage.
* The loans offer significant tax savings because the interest paid on them is tax deductible. For example, interest paid on personal debt, such as credit cards, are not deductible.
* The option to consolidate these loans into a home equity loan, the interest you pay is transformed into a deductible home mortgage.
* Lenders generally will extend a line of credit worth 80% of your equity in the property.