Home equity loan tax deductible

Many home equity loans are tax-deductible. Unfortunately,most borrowers step into the loans without taking advantage of the savings. Employers,businesses,and many others are offered cuts on taxes from paying particular expenditures from the gross earnings. Thus,they won’t get a cut on the mortgage itself possibly,but the interest rates on the equity loan are tax-cutting commodities.

Home equity loans are loans provided to borrowers against the value or equity on the home. In other words,lenders will calculate the value of the home,comparing it the amount owed on the home; thus figuring the amount applied for on the loan. Lenders nowadays are competing against other lenders,since the Internet is swarming with mortgage lenders offer great rates. Thus,if you are searching for equity loans,it is time to start now,since the Prime Rates are at its lowest this year. Many mortgage lenders are offering rates as low as 6%,while others are dropping the rates to an outstanding 1%. Of course,the rates are temporary for the most part,but they are still a great way to start saving on loans.

Borrowers are wise to read the terms and conditions as well as the fine print when considering loans,since the information that leads to the real deal lies in between those lines. While there are various types of loans available,for the most part,equity loans are second loans or HELOC. The HELOC is home equity line of credit. Comparing the two will help you to weigh out the needs of your intended loan. Finally,if you are searching for a loan that offers cash back,you may want to go online to review the various loans offered. First time buyers are wise to review the different types of loans to get the best deals.

IRS expands rules on deductible home-equity debt.: An article from: Journal of Accountancy
Book (American Institute of CPA's)

Home Equity Loan: does this make sense to do?

2008-06-11 05:38:55 by sonatina

I belong to a credit union which is offering a special on home equity loans right now -- 5.5% with no fees.
Seems like a pretty good deal given inflation etc, since I would be paying the loan back over time with depreciating dollars, plus the interest is tax deductible.
Any reason I should not do this? There is no mortgage on the property, if that matters.
Thanks in advance for any advice.

Deferred home equity loan interest tax deduc?

2005-06-27 15:26:16 by bcempire

I recently obtained a $50,000 home equity loan on my primary residence with Bank of America (It's the standard home equity line of credit with the ability to have up to 3 fixed rate loan options at one time).
A few days after the funding of the loan, I made a large principal payment of $9,200 putting me in a "paid-ahead" status as BoA called it. Therefore, they said I don't have to make a payment until 9/5/2007! I couldn't believe that they would allow no payments for over 2 years. If I don't make any payments, interest will continue to accrue and the deferred interest will be tacked on to the principal balance

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