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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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Use home equity loan to pay for school?

Dear Dr. Don, I wish to help my daughter pay for nursing school by getting a $70,000 home equity line of credit . She would like to pay it off in the next 15 to 20 years. One variable-rate option carries a cost of the... Read more

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