Should I consider a home equity loan or line or credit?
Hilco Mortgage is ready to help you answer this question. Whether you need to remodel your home, pay off existing debt or start that hobby we offer equity options to suit your needs.
- Reasons to take an equity loan
- Looking to consolidate credit card debt? Need a way to pay for your children’s college tuition? An equity loan taps into your home’s equity to make tomorrow’s dreams come true today. You can use your equity to buy a new car or boat, remodel your home, finance your child’s wedding or take an unforgettable vacation. Best of all, interest paid on the loan is usually tax deductible (consult your tax advisor).
- What is a home equity loan?
- Often called a second mortgage, a home equity loan has fixed rates and is generally repaid over a 10-year period. The loan is amortized, meaning your monthly payment is applied to principal and interest. For people who need a one-time lump sum, such as for the purchase of a car or debt consolidation, the equity loan offers the best option.
- What is a home equity line of credit?
- What do you do when home remodeling costs go over budget? Or your child’s college tuition increases? You don’t have to worry with a home equity line of credit. Like a credit card, you are pre-approved to borrow money as you need it, up to your credit limit. But unlike a credit card, a line of credit usually offers you a much lower variable interest rate.
- How can it save me money?
- A home equity loan or line of credit offers you two distinct ways to save. First, the interest paid is usually tax deductible, unlike that of credit cards or other loan programs (consult your tax advisor). Second, the interest rate is usually lower than rates on most credit cards.
