By Daniel Gray
Drowning in debt? Home equity loans are one of the most popular ways to clean up personal debt while lowering monthly payments. When you take out a home equity loan, you borrow against the equity in your house. The loan is secured by a mortgage lien. There are two primary advantages of home equity loans: the interest paid may be tax-deductible, and the interest rate is often just a fraction of that paid on a typical credit card account. Both of these factors can add up to significant savings for borrowers.
Homeowners often use the funds from their home equity loans for debt consolidation (resulting from too many geeky shopping excursions), home improvements (finally, a worthy home office!), or other big-ticket purchases (like that rack-mounted server for the basement). Loan offers can come from many sources: from local banks, through direct mail, and via the Internet. With so many options, choosing the right loan and the right lender can be a difficult decision. But the bottom line remains clear: you can save a considerable amount of money.
How much, you ask? Lets take a look…