Why get an equity loan?

An equity loan can be used for many worthwhile purposes. You can:

Consolidate outstanding debts into a single, manageable monthly payment. You can save money by converting non tax-deductible consumer interest to totally deductible home equity interest. Check with your tax advisor.

Cover the cost of improvements that can increase the market value of your home.

Finance the education of your children, your spouse, or yourself.

Pay for medical expenses, especially unexpected illnesses and procedures not covered by your health insurance.

Purchase large ticket items, such as automobiles, under a tax-deductible credit plan.

Make the down payment on a vacation or retirement home.

Generally, the interest paid on a home equity loan or line of credit is fully deductible, provided the loan, up to a maximum of $100,000, does not exceed the fair market value less the outstanding mortgage. However, limitations and restrictions apply to special situations. We suggest you consult your tax advisor concerning your particular situation.

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