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What are the primary advantages of a home equity line of credit?

April 26, 2017advantages home equity line of credit primary

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What are the primary advantages of a home equity line of credit?

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• A. The two major advantages of borrowing with a home equity line of credit are lower interest rates and potential tax savings: 1. The interest rate you pay on the average home equity line of credit is generally lower than the interest rate you will pay on the average credit card or other type of non-secured debt. 2. For home equity lines of credit, you can generally deduct the interest you pay from your taxes. The interest you pay on credit cards and other types of personal loans is generally not tax-deductible. If your line exceeds far market value of the properly, the interest may not be tax deductible. Consult your tax advisor regarding the deductibility of interest.