Christian Debt Recovery

Debt Vs Equity Tax

October 30th, 2007 |

Author: Gavin

Home Equity Loan Vs Home Equity Line Of Credit (HEL Vs HELOC)

Have you ever felt the need of extra money for home improvements or repairs? Or are you in search for consolidation of your credit card debts because you are retrenched from work? Or are you in need of money for the college education of your children but you can’t afford to? Well then, applying for a loan is the best move you can do.

There are many reasons to you may be interested in another mortgage on your home. Reasons that are popular include home repairs, health expenses, bill consolidation or college tuition.

Home Equity Wholesale – A second mortgage is popular for several reasons; one of those is the fact that the interest that is paid on a second mortgage is tax deductible. If you are considering a second mortgage on your home you will need to compare a Home Equity Loan (HEL) vs Home Equity Line of Credit (HELOC).

The HEL is a mortgage, which is much like your normal home mortgage. You will chose the amount of the loan based on the equity you have in your home and upon closing you are given a check written for that amount of money. You will make periodic payments on the loan. The amount borrowed plus interest is paid back over several years. If you need more money at another time, you will have to make arrangements for a third loan.

In a HELOC, you are able to draw money more than once. In fact this type of loan is similar to a credit card. Remember that interest however, is deductible from your taxes. In addition, money paid on the HELOC may be withdrawn again. As long as you have not borrowed more than the original amount of the loan you can continue to make withdrawals at any time.

Home Equity Wholesale – If you tend to let available credit or money slip through your hands, you many prefer the traditional home equity loan. Then the money you borrow will be used for the specified purpose. If you are involved in a project where the actual cost is unknown, you may prefer the HELOC. By working with a good loan officer, you can choose the best in the debate of Home Equity Loan vs Home Equity Line of Credit.

About the Author

Jennet has an interest in Finance & Business and Mortgage Lenders, for more FREE information and articles please visit Home Equity Wholesale

Debt vs. equity: the saga continues.: An article from: The Tax Adviser

$9.95

This digital document is an article from The Tax Adviser, published by Thomson Gale on September 1, 2006. The length of the article is 801 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.Citation DetailsTitle: Debt vs. e…