Industry Tips
Home Equity Loans
Home equity loans have become a new source of credit for thousands of homeowners.
Taxpayers may still claim deductions for interest on some mortgage-related loans and the interest rates are generally lower. Most home equity loans are second mortgages. Advantages to home equity loans include a large credit line, reduced paperwork and payment flexibility. Many home equity loans carry variable interest rates. These rates usually range from one to three percent above the banking industry's prime rate.
Lending institutions which offer home equity loans must set a maximum interest rate for the life of the loan. Inquire into what other lender's fees will be charged to you and whether your lender has the right to change the terms and conditions of your plan or terminate your plan. Be sure that all of the interest you hope to deduct on your home equity loan is in fact deductable. Carefully evaluate you reasons for using the equity in your home, most consumers use home equity loans only for major important purchases or financial needs.
For more information, contact:
Better Business Bureau
100 Bryant Woods South, Amherst, NY 14228
(800) 828-5000
www.upstateny.bbb.org
This report is general in nature and is not intended as a Business Review on any company, service or product.