Home Equity Tips
September 25th, 2008 by admin
When you borrow via a home equity, you cannot use you total home equity as your collateral. Many states assign up to 80% of the total market value of your home as your collateral. The fully-paid home with a market value of $120,000 will have collateral of only $96,000 only. This means that even if your home equity is $120,000, you can only borrow $96,000.What is good about this kind of loan is that the government can pay for the interest. You borrow $100,000 for example and total interest is $2,000. With home equity loan, you can only pay $100,000 by deducting the $2,000 interest in your tax payments. It pays if you know the home equity loan tax deductible stipulations of our law.