Front Page Big Purchases Maintain Home Equity

To develop common sense about personal finance and money you need information

Below, you'll find extensive information on leading maintain home equity articles and products to help you on your way to success.

Maintain home equity

Once you have got your new house, keep it new. Maintenance costs will look like a waste to you, but if you don't repair on time, the risk is you'll have to do it anyway at a higher cost. If the house and landscaping are in mint condition you will sell it easily -maybe you'll get a bidding war- or it might become an important asset should you fall into debt.

Home Equity Loans - Pros and Cons

Obtaining a home equity loan is a common method of refinancing debt and it has several advantages. But there are a few potential 'gotchas' that are worth considering before taking the plunge.

First, what is a 'home equity loan'? The basic idea is simple: obtain a line of credit, secured by the equity in your home. That is, if you have a certain amount of ownership in your house - say, as a result of having made a down payment or payments over a long time (as many homeowners do) - borrow against that equity.

Many homeowners will take out a HELOC (Home Equity Line of Credit), as they're called, in order to use the money for the purpose those loans were invented: financing home improvements. That purpose gave the loan its original name. But, because of tax implications and other reasons, the HELOC evolved to serve other purposes.

Interest paid on most kinds of debt is not tax deductible, but interest paid on a home loan is. Hence, interest paid on a HELOC can actually be a form of less expensive debt.

Suppose, you have a 12% HELOC for up to $10,000. With most HELOCs you don't actually borrow the entire amount at once. You draw on it, much as you would a credit card, as needed and desired.

So, you have multiple benefits. You can borrow only what you need - keeping the payments and the interest owed as low as possible. And, you get to reduce your taxes by a percentage of the interest paid per year.

[CaRP] XML error: not well-formed (invalid token) at line 234 -