1. Debt consolidation. According to the Consumer
Credit Counseling Service of San Francisco, you have too much debt
if you're spending more than 15% of your net income to repay unsecured
credit (credit cards, student loans, etc.) With a home equity loan,
you can repay your excess debt at a lower rate.
2. Home improvement. What a better way to
make improvements to your home than by using the value of your home
to finance the upgrades? Use a home equity loan to cover the cost
of new roofing or siding, heating or cooling system upgrades, an addition
or even a remodeling job. Depending on the project you choose, you
may be able to recoup some or all of your improvement costs if you
sell your home.
3. A new or used car. A low-rate loan from
a new carmaker may sound like a good deal, but taking it means you'll
miss the rebate. Plus, interest on car loans is not tax-deductible.
Home equity loan rates are competitive with auto loan rates and you'll
potentially get a tax deduction.*
4. Higher Education. A home equity loan can
be an A-plus way to cover some or all of the costs of education, whether
it's you or your children hitting the books. It's particularly handy
if you're ineligible for financial aid (or if aid is insufficient).
5. Vacation. With a home equity loan, you
can book and enjoy a vacation now and spread you payments out for
months afterward. Plus, Uncle Sam might even be willing to help defray
your interest costs!*
6. New home furnishings. Update worn carpeting,
window treatments or furniture with the latest in furnishings-your
home equity loan makes it all possible.
7. A new boat or recreational vehicle. Why
should the latest in motorized leisure vehicles be limited to TV game
show winners? Indulge yourself, using a home equity loan, and enjoy
your purchase for years to come.
8. Medical Costs. There's no need to drain
your savings account to pay high deductible costs or for procedures
not covered by insurance. Get the treatment you need when you need
it and use your home equity loan to cover any extra costs.