Tax Deductions
Tax deductibility of Home Equity Loans ain't a good reason to lose money :-) For every dollar in your loan, you get back about 30 cents. Not a good deal! Tax deductions should be a secondary or tertiary benefit. Get some reliable advice from a trusted tax professional before taking on a loan for tax deduction reasons.
Investment Funding
Stock market investing is high risk. If your home is your nest egg, it's not wise to risk your family's nest and put your eggs into the stock market basket!
Deferring Debt
Using home equity to consolidate debt without making adjustments in lifestyle could create long term financial disaster or slide into further debt. If you consolidate credit card loans into a home equity loan, your house is on the line.
Wish Lists and Wishful Thinking
People who have lot of money typically haven't used much debt. They don't buy discretionary items like boats, wardrobes and trips with debt...especially their core housing!
... On The Other Hand
Home equity loans are good for home improvements that improve the value of the property, reduce operational costs...or cope with disasters such as floods or health problems.
Tax deductibility of Home Equity Loans ain't a good reason to lose money :-) For every dollar in your loan, you get back about 30 cents. Not a good deal! Tax deductions should be a secondary or tertiary benefit. Get some reliable advice from a trusted tax professional before taking on a loan for tax deduction reasons.
Investment Funding
Stock market investing is high risk. If your home is your nest egg, it's not wise to risk your family's nest and put your eggs into the stock market basket!
Deferring Debt
Using home equity to consolidate debt without making adjustments in lifestyle could create long term financial disaster or slide into further debt. If you consolidate credit card loans into a home equity loan, your house is on the line.
Wish Lists and Wishful Thinking
People who have lot of money typically haven't used much debt. They don't buy discretionary items like boats, wardrobes and trips with debt...especially their core housing!
... On The Other Hand
Home equity loans are good for home improvements that improve the value of the property, reduce operational costs...or cope with disasters such as floods or health problems.