Home equity credit lines may be a very useful source of credit when you need to borrow money.
When you finance a purchase today, such as an automobile or a boat, you can no longer deduct
the interest that you pay on this type of loan from your personal Federal Income Tax. By
establishing a line of credit, commonly referred to as a home equity loan, you would normally
be able to deduct the interest because your home is actually being used for collateral.
Please check with your tax advisor concerning personal tax advantages.
For example, if you purchased a $25,000 automobile with a home equity loan, you would actually
be paying cash for the automobile. At the same time, it would take an additional $25,000 to
pay off the outstanding balance on your home. To determine the actual savings that a home
equity loan would provide, you will need to calculate the tax savings that you will enjoy by
being able to deduct the additional interest when you file your tax return. We are the mortgage professionals for Louisiana and located in Lake Charles. Please let us do your next home equity loan.
Remember, there are other ways to borrow money. You might consider exploring a second mortgage
loan as an alternative to a home equity loan. Click here
for further information about second mortgages.