However, if the taxpayer took out a $250,000 home equity loan
on the main home to purchase the vacation home, then the interest on the home equity loan
would not be deductible.
About One in Three Consumers Used a Home Equity Loan
to Make Home Improvements
If T uses a home equity loan
instead to purchase the vacation home, the interest would be deductible as an itemized deduction rather than a rental expense (assuming T has no other home equity interest expense and he does not elect out of the home equity debt treatment).
McBride offers one caution: "You might replace such loans with a home equity loan
or larger home mortgage, but if you refinance a mortgage to pay off other types of loans, keep the home mortgage to no more than 80% of the home's value.
Consumer finance companies invented the modern home equity loan
in the late 1970s, and they held the loans in their portfolios.
This question is particularly significant because home equity loan
rates are adjustable.
Even if you don't plan on traveling or if you never end up redeeming them for a ticket or upgrade, you can donate your unused miles earned on your home equity loan
or line of credit to the charities with which the airlines have partnerships.
In one survey, 7 percent of all homeowners had a refinanced mortgage that involved the raising of additional funds; in another survey, about 11 percent of homeowners had a home equity loan
of one type or the other.
The loan to value (LTV) ratio is the ratio of the amount of money you borrow through a home equity loan
(or mortgage) to the value of your home.
Another option: an unsecured home equity loan
, meaning you don't have.
1 The first of these, referred to here as a "traditional home equity loan
," is a closed-end loan extended for a specified period of time and generally requiring repayment of interest and principal in equal monthly installments.
6% of the mortgage loans were included in the ContiMortgage Home Equity Loan
Trust 1997-3, the ContiMortgage Home Equity Loan
Trust 1998-2, or the ContiMortgage Home Equity Loan
The eAppraisal tool helps consumers understand the value of a new home purchase or approximate the equity value of their existing home for a home equity loan
Irwin Whole Loan Home Equity Loan
Trust, series 2005-A
Secured Funding is now able to automate its entire home equity loan
process from origination to closing, enabling the lender to offer brokers and borrowers a complete electronic mortgage.