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By
Charles Essmeier
Thanks to the combination of low interest rates and skyrocketing property
values, home equity loans are more popular than ever. The value of home
equity loans taken out by Americans has doubled in the last two years, and
the market for them shows no signs of slowing down. Obtaining a home equity
loan is usually a fairly simple process involving some paperwork, a credit
check, and a home appraisal, and the entire process can often be done in just
a few weeks. Lenders will often lend up to 80% of the value of the home’s
equity, and some lenders will even lend up to 125% of a home’s equity.
Home equity loans are quite useful, and have several advantages over other
types of loans, such as credit card loans or more traditional secured loans.
The biggest advantage is that the interest on home equity loans is tax
deductible. The interest rates on home equity loans are already pretty
competitive, but the addition of the tax deduction makes them pretty hard to
beat. But do you have to use a home equity loan to improve your home in order
to qualify for the tax deduction?
Many people do not realize that improvements on your home are not necessary in
order to take the tax deduction. While home improvement is probably the most
popular reason for taking out a home equity loan, many people use them for
any one of a number of other reasons -- buying a boat or RV, taking a dream
vacation, or even just using the money for to debt consolidation. (http://www.
end-your-debt.com/>debt) The relatively modest interest rates charged for
home equity loans are far more favorable than the 20% or so charged by many
credit card companies, making debt consolidation a pretty smart use for a
home equity loan.
Whatever the reason for taking out a home equity loan, be it home improvement
or otherwise, the tax deduction makes it a pretty good way to borrow money.
©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro
Marketing, a firm devoted to informational Websites, including End-Your-Debt.
com, a Website devoted to debt consolidation (http://www.end-your-debt.com/
>debt) information and HomeEquityHelp.net, a site devoted to information on
home equity loans. (http://www.homeequityhelp.net/>)
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