A major perk of using a Home Equity Line of Credit to consolidate your debt is that you’re likely to reduce the amount of interest you’re paying. Home equity interest rates can be lower than credit card or other loan rates. Find out if using your home’s equity is the right option for you and how to apply.
Another way to fund your project is to take out a Home Equity Loan. These mortgages offer the tax benefits of conventional mortgages without the closing costs. You get the entire loan up front and pay it off over 15 to 30 years. And because the interest usually is fixed, monthly payments are easy to budget. The drawback: Rates tend to be slightly higher than those for conventional mortgages.
What You Need to Know Before Getting a Home Equity Loan
Home equity loans let you borrow against your home's value. They can be used for any purpose, they come with relatively low interest rates, and they may offer tax benefits. Learn more about how home equity loans work.
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Airbnb rentals can play havoc with your mortgage Renting out your home on a service like Airbnb is supposed to be good for your bottom line but its now clear that it can create some headaches if youre a homeowner. The Wall Street Journal is warning that banks may turn down your attempt to refinance your mortgage if they learn that youve rented your home on Airbnb. Simply speaking banks tend to see homes as either personal residences or investments and dont like the risk associated with the latter. While some banks may allow a gray area between the two others wont be so kind Bank of America for example wont give you a home equity line of credit if theres a material amount of commerce in your home. Airbnb tells the newspaper that rejections are incredibly rare although it doesnt have statistics. Its believable though. Only some hosts rent their homes frequently enough that it could make up a large chunk of their income and a mere fraction of those people would both want to refinance their mortgages and run into trouble doing it. Still this is a useful heads-up: you may have to either live with your existing mortgage terms or deal with the higher interest rates that come with treating your home as an investment. Via: Consumerist Source: Wall Street Journal - Repost from: engadget Post - you can download ImmedTech app for android from link : http://bit.ly/ITapp-v1512