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home equity
Chapter 2: Decisions, decisions

Which type of equity loan is right for you? It depends on the purpose for the loan and how long you need the money.

The tax deductibility and low interest rates of a home equity loan make it attractive. What do most people use the money for? We look at the common reasons people borrow against their equity and also show which type of loan -- the lump-sum equity loan or the little-at-a-time HELOC -- is best suited to the purpose. We also point out the pros and cons of these loans in a simple manner.

What you can expect to learn from this chapter:

 

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Ask Dr. Don

Is it wise to max out your HELOC?

Dear Dr. Don, I have a 3.25 percent adjustable home equity line of credit. The draw period on the HELOC ends next April when it will convert to an amortized 20-year home equity loan at the 3.25 percent adjustable rate.... Read more

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