Iowa Home Equity Loans
Home equity loans and home equity lines of credit (HELOC) are a popular way for homeowners in Iowa to finance projects and initiatives. The best way for a homeowner in Iowa to determine whether a home equity loan or home equity line of credit (HELOC) is the best fit is to evaluate how the money will be used. Typically, homeowners tap into their home’s equity to finance home improvements, debt consolidation, auto purchases or even medical expenses. In Iowa, second mortgages may also be tax deductible if applied toward home improvement or repair.
A home equity loan is best used for one large expense, such as a new roof or bathroom remodel in Davenport (52722) for example. Home equity loans are installment loans and the borrower receives a lump sum of money at once. Home equity loans have fixed rates and a pre-determined repayment period. On the other hand, a home equity line of credit (HELOC) is ideal for paying for ongoing expenses such as a homeowner in Storm Lake (50588) paying for college tuition. HELOCs have a variable interest rate and essentially act like a credit card—the borrower only repays the amount drawn against the line.