What is a Home Equity Loan?

A home is most commonlypeople’s most prized possession.  It can be more than just a place ofsolitude, it can be a way of achieving a great low interest loan.  Mostpeople understand that they can use their house as collateral to obtain amortgage, but there are other types of loans that allow you to take the equity,or the value of your house minus any loans, out and use that for whatever youwish.  This type of loan is called a Home Equity loan.  There are twomain types; A home equity loan, and a home equity line of credit.

 You can deduct theinterest paid on both types from your taxes, making sure to speak with a taxadvisor so that all rules are being followed.