|
 |
|
|
Home Equity
| Home Equity Line of Credit |
Advantages
| |
You only borrow what you need |
| |
Pay interest only on what you borrow |
| |
Flexible access to funds |
| |
Interest may be tax deductible |
|
Disadvantages
| |
Rates can change. The maximum interest rate is normally high. |
| |
Payments can change |
| |
Harder to refinance your first mortgage |
|
| Home Equity Fixed Loan |
Advantages
| |
Fixed payments |
| |
Interest may be tax deductible |
|
Disadvantages
| |
Higher interest rates than on 1st mortgages |
| |
Harder to refinance your first mortgage |
|
|
|
|
|
