Closed-End
Loan Benefits
A closed-end home equity loan could be a great source
of funds for a number of reasons: no change in an
existing first mortgage, the possibility of tax deductible
interest (consult your tax advisor), low interest
rates, no mortgage insurance required, and you can
use the loan for any purpose. A Home Equity Loan is
the right choice for things like debt consolidation
and single-purpose purchases. These purchases could
include: automobiles, medical bills, college tuition,
and even extra cash. |
Line
of Credit Benefits
As far as consumer loans go, Home Equity Lines of
Credit have some of the lowest interest rates and
minimum payments. Application and documentation requirements
are generally less demanding than traditional first
or second mortgages. This makes it easier to qualify.
Mortgage insurance is not required on any Home Equity
Lines of Credit, thus reducing monthly payments. Interest
payments may be tax deductible (consult your tax advisor).
Home Equity Lines of Credit may reduce your monthly
debt payment if the borrower uses them to pay off
existing debts. |
