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As one of the most valuable assets you possess, your home likely forms the cornerstone of your personal wealth. However, the money your home is worth isn’t usually accessible without selling your house, which can be frustrating if you’d like to use those resources to consolidate debt, pay for renovations, or cover other major expenses. A home equity loan lets you take advantage of the money you’ve invested in your home and offers a variety of other attractive benefits.

The Advantages of Home Equity Loans 

1. Options

Lenders offer home equity loans as either lump sums or revolving lines of credit, which can be accessed and paid back as needed. This flexibility means you can choose a loan program suited to your needs, with the chance to borrow more if circumstances change.

2. Lower Interest Rates

home equity loanBecause home equity loans are secured by the value of your home, interest rates are usually much lower than credit cards or other unsecured accounts. Using a home equity loan to consolidate your debts or finance major purchases can help you save thousands of dollars in the long run.

3. Fixed Rates

The majority of home equity loans feature fixed rate interest rates, which can simplify budgeting and eliminate unpleasant surprises in the future. Credit cards and some personal loans, on the other hand, have variable interest rates, which can go up without warning.

4. Possible Tax Deductions

In the past, homeowners could deduct interest paid on home equity loans of up to $100,000, regardless of how the money was used. While last year’s tax code overhaul dramatically limited this exemption, you might still be able to deduct interest payments if the loan was used to pay off a first mortgage or substantially improve your property.


 

Looking to get a Home Equity Loan? Armstrong County Building & Loan Association has been a trusted provider of mortgages and home equity loans since 1925. Whatever your needs, you can rely on their team, located in Armstrong County, PA, for friendly service and and an easy application process. Visit their website for more on their loan products and services, or call (724) 763-7137 to make an appointment.

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