You can use the equity you've built-up in your home for important matters like college tuition, debt consolidation and home improvement.
Most commonly, home equity loans are available for new pools, kitchen remodeling, or additions.
Types of home loans:
Equity Loans (a second mortgage on your home) can very well be used to get rid of your debts. Some of the advantages are:
1 - If you own a house, interest on the refinancing or home-equity loan can be deducted from your taxes.
2 - Equity loans offer terms between five and 30 years. Home equity lines of credit can be drawn on for 10 years. After 10 years, you can apply to renew your line of credit.
3 - Home equity lines of credit feature a variable interest rate with a draw period of 10 years and a total repayment period of 30 years.
4 - Your credit limit is determined by taking a percentage of your home's appraised or fair market value, and subtracting the balances of any outstanding mortgages on the property. If you qualify, the minimum home equity loan or line of credit amount is $10,000.
5 - You do not have to occupy the residence you are using as collateral unless you are requesting a loan or line of credit accessing over 80% of your available equity.
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