Borrow Home Equity

Borrowing against your home equity could be a quick fix, but it also carries the risk of using your home as collateral. If you are a home owner and have been faithfully paying your mortgage for some time, you might consider a Home Equity Loan (HELoan) or Home Equity Line of Credit (HELOC) to help you pay off your unsecured debts. This will help you reduce expenses in two ways. First, you will pay less in interest payments. The average interest rates charged for HELOC and HELoans are 6-7% versus the average 12-20% rates charged by credit card companies. Second, if you itemize deductions on your income tax returns, the interest paid on a HELOC or a HELoan is tax deductible (in most cases). If you are in a 25% marginal tax bracket, a 6% loan has an effective rate of 4.5%.

Be sure to contact us to discuss all of the options available to you before making a decision.

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