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HOME EQUITY LOANS

In 2002, over 15 million American families took advantage of home equity loans. A home equity loan, also commonly referred to as a second mortgage, allows home owners to borrow additional money, using the equity in their home as collateral. Generally, home equity loans are used to finance home repairs, remodeling, landscaping and other projects. However, since home equity loans are generally tax deductible, they also make a great way to borrow for other reasons, including paying of higher interest credit card debt and car loans. Home equity loans are commonly available with both fixed and variable rates. Most lenders will allow home owners to take out a home equity loan equal to a specified percentage of the equity they have in their home.