Home equity loans are an increasingly popular way to raise cash. Find out what the risks and rewards are.Your home is your castle -- and sometimes it's also your bank. The equity in your home -- the current appraised value minus the amount owed on the house -- can be tapped through loans at lower interest rates than credit cards. This chapter defines the types of home equity debt and the pitfalls of each. We also look at the tax advantage and low interest rates that make them such a popular option for borrowing.What you can expect to learn from this chapter:What home equity debt is The two types of home equity debt -- home equity line of credit, or HELOC, and home equity loan -- are explained.Why they are popular Their low interest rates and tax deductibility make these loans attractive. Plus, links to Bankrate's calculators to find the best rates. advertisementRelated Links:National home equity loan ratesNational home equity loan ratesPay your car loan with a HELOC?Related Articles:Home equity ratesHome equity ratesHome improvement
Home equity loans are an increasingly popular way to raise cash. Find out what the risks and rewards are.
Your home is your castle -- and sometimes it's also your bank. The equity in your home -- the current appraised value minus the amount owed on the house -- can be tapped through loans at lower interest rates than credit cards. This chapter defines the types of home equity debt and the pitfalls of each. We also look at the tax advantage and low interest rates that make them such a popular option for borrowing.
Bankrate wants to hear from you and encourages thoughtful and constructive comments. We ask that you stay focused on the story topic, respect other people's opinions, and avoid profanity, offensive statements, illegal contents and advertisement posts. Comments are not reviewed before they are posted. Bankrate reserves the right (but is not obligated) to edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.
By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.
A little research could save you BIG on interest.