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Don't forget your greatest asset when you are trying to take care of a current or upcoming financial obligation. You can use up to 90% of the value of your home as collateral for a line of credit. If you have a 1st mortgage on your property, you must first subtract the balance from the 90% amount and the amount left is referred to as equity.
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Example: Value: $100,000
X 90%
$90,000
Equity: $90,000
1st mortgage -50,000
(total equity) $40,000
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If you do not have a mortgage on your property, then your equity would be 90% of the value of the home.
Now that you know how to calculate your equity, you should know all the benefits of the Home equity line.
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Tax Deductible - The interest on a Home equity line may be tax deductible and you should consult with your tax advisor to see if this is a benefit for you.
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Convenient - Once you have your equity line in place you may use it up to the maximum of the line established. If the line is paid down you may use it again without initiating new paperwork. Also you will receive a bill each month for the amount of the payment.
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Inexpensive - The fees to process a Home equity line of credit are minimal.
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Affordable - Payment terms
The Home Equity Line of Credit has a variable rate of interest and can be used for many purposes. Some of these purposes are home improvement, college expenses, purchase of an auto, or maybe that wonderful vacation you've been dreaming of. Don't run your credit card up when you could come in and get a line of credit that would take care of the same needs at a low interest rate and the interest may even be tax deductible. We have experienced staff waiting to help you. Call us at (712) 623-4823.
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