Homeowners Reveal Unexpected Benefits Of Equity Borrowing
Unexpected Benefits of Equity Borrowing
While the primary motivation for many homeowners is to access funds, equity borrowing offers several unexpected advantages. One significant benefit is the potential tax deduction on interest paid on home equity loans, depending on how the funds are used. For instance, if the loan is utilized for home improvements, the interest may be tax-deductible, providing additional savings1.
Moreover, using a HELOC can improve your credit score over time. As you make consistent payments, it demonstrates financial responsibility, which can positively impact your credit profile. Additionally, a HELOC offers flexibility, allowing you to draw funds as needed, akin to a credit card but typically with much lower interest rates2.