Under the new law, for example, interest on a home equity loan
used to build an addition to an existing home is typically deductible, while interest on the same loan used to pay personal living expenses, such as credit card debts, is not.
CommonWealth One Federal Credit Union president and CEO Charlotte Cash said, "While a home equity loan
is a smart way to put the equity in your home to work, some members were left with little or no equity after the Great Recession and the dramatic drop in home values.
is finding that its members have both demand and ability to take out home equity loans
and lines of credit.
As a result, it is not surprising that 25% of homeowners say they have both a first mortgage and a home equity loan
or line in a recent Experian/Gallup Personal Credit Index (PCI) poll.
For vacation home owners, using a home equity loan
to finance property may offer the following advantages:
The brochure notes that many consumers may have other options for meeting their financial needs besides taking out a home equity loan
If refinancing a new car loan doesn't make sense, consider paying it off' with a lower-cost, tax-deductible home equity loan
During refi booms, cash-out refis are a particularly attractive alternative to a consumer who might otherwise get a home equity loan
Estimates of the size of the home equity loan
market vary significantly.
If they can qualify for a refinancing, most homeowners, depending on the amount needed, will also be able to obtain funds using a home equity loan
, a personal loan, or a credit card account.