Best Home Equity Loans ? Common Uses For Home Equity Loans

Posted by Nick Niesen on October 29th, 2010

Home equity loans provide you access to low rate financing so you can invest in your future. Whether you are looking to save money by consolidating your debt or invest in a college education for yourself or children, home equity loans are there. Additionally, home equity loans can be used as a tax deduction under the right circumstances.

Saving Money By Consolidating Debt

Consolidating your short term debt into one home equity loan can cut your rates in half or more. Interest savings can be in the thousands. And you don?t have to worry about multiple payments to different creditors.

By using your equity, you can pay off credit cards, personal loans, and outstanding bills. With the low rate home equity loan, you can trim years off your repayment plan, even with a smaller monthly payment.

Consolidating your debt also allows you to select terms and payments that fit with your budget. So you can opt for a fast track payoff schedule, or take care of your debt in smaller chunks.

Investing In A College Education

A college education is often financed by a home equity loan. Measured as part of your assets when applying for financial aid, you might as well use it as a low interest loan.

Most types of financial aid programs are unavailable to those attending school less than full time. So financing your education with your home equity can help you secure a low rate loan.

Upgrading Your Home With A Remodel Or Repairs

Using your home equity to remodel or repair your home will benefit you in a couple of ways. First, you will have great rates. Second, you will improve the value of your home, further increasing your equity. And finally, you can write off more of your interest charges on your tax returns by using the loan to improve your home.

No matter how you choose to spend your equity, make sure you get the best lender. Look online for loan quotes and compare to be sure you don?t get caught on high rates or fees. And know that you have control over the terms, which give you maximum flexibility.