Monday, July 13, 2009

Should You Access Your Home's Value with a 100% Home Equity Loan?

There isn't a right or wrong answer; the answer depends on the individual. That being said, borrowing 100 percent of your home's value may offer you greater benefits than other options.

A 100 percent home equity loan or 100 percent mortgage refinance may provide:

  • A Larger Amount Of Credit

    Borrowing 100 percent of your home's value may mean access to more funds than from another source (i.e. credit card, regular loans).

  • Lower Rates

    Generally, lower interest rates are available for loans secured by a home than for credit cards or other unsecured personal loans.

  • Tax Deductibility

    Typically, the interest on a home equity loan is tax deductible; where this is not available for most personal loans.

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