Michigan Home Equity Loans
Homeowners in the “Great Lake” state of Michigan are turning to home loans for improvements, repairs and to cover a few other non-home related expenses. Whether its debt consolidation in Detroit (48201) or paying for college tuition in Ferndale (48220); Michiganders are tapping into their home’s equity to finance life events. Most lenders offer two types of traditional second mortgage products—a home equity loan or home equity line of credit (HELOC). Both home equity loans and home equity lines of credit require that that the homeowner have vested equity in the property and the majority of lenders will allow up to 80% loan-to-value.
Michigan homeowners interested in financing home improvements, repairs, an auto purchase or debt consolidation should consider a home equity loan. Home equity loans offer a fixed rate and provide one lump sum of cash to the borrower. Interest from a home equity loan may be tax deductible if used for home improvements or repairs, however Michigan homeowners are advised to consult a tax advisor before claiming the deduction. For those who need a steady cash stream for expenses such as college tuition or ongoing medical costs; a home equity line of credit (HELOC) may be the best fit. A home equity line of credit (HELOC) is offered at a variable interest rate and acts as a revolving line of credit. The borrower must only repay the amount drawn against the line.