Equity home loans

Many individuals fund vacations, education or home improvements with a line of credit of this nature. Equity home loans are also tax deductible if an individual itemizes on their federal tax return. As with a traditional first mortgage, the interest paid can be written off. This makes funding of this type appealing for homeowners who need funding for a car, boat or any other reason. Receiving an item specific loan will not enable them to receive the tax write off. In addition to tax benefits, an equity home loan is typically offered at much lower interest rates than any other forms of assistance, including mortgages.