If you are considering borrowing for home improvements or paying for college education, you may want to consider taking advantage of the equity in your home. (Equity is the difference between your home's current market value and the total amount you owe on your home loan.) Many homeowners are finding that home equity can be beneficial, so long as you carefully analyze the advantages.

Possible Tax Savings - Unlike the interest on other consumer loans, the interest on a home equity loan may be tax deductible. (Of course, it's always a good idea to consult your tax advisor for an explanation of your potential benefits.) This can make the interest payments on larger purchases like cars, boats, and recreational vehicles, or college or medical expenses tax deductible if financed by a home equity loan.

Low Rates - Since the loan is secured by your home, interest rates are usually very affordable.

Longer Terms - Often you can enjoy longer payback schedules on home equity loans. This usually means lower monthly payments.

Higher Amounts - Home equity limits are usually higher than on other consumer loans. You can consolidate several smaller loans into one home equity loan for example, and have fewer debts to manage.

Line of Credit Option - With a Line of Credit you can borrow as much as you need, when you need it, up to your approved limit. Interest is due only on the outstanding balance, and since it is "revolving" credit, funds repaid are available for borrowing again. This can be ideal for paying college tuition due each term, for example.

Some Closing Costs & Fees - Depending upon the financial institution, you may incur some closing costs or fees. These can be one time charges, sometimes as much as $250 - $400. So it's always a good idea to shop around.

Fixed & Variable Rate Options - Be sure to ask questions as you shop for a home equity loan. You'll want to decide if a fixed rate (one guaranteed for the term of the loan) or variable rate (one that can vary with market conditions) better meets your needs.

For more information about home improvement lending, call our Real Estate office today at (407) 647-8252 or click here.