New York Home Equity Loans
From bustling Manhattan (10026) to upscale suburban Westchester (10518); homeowners throughout New York are using the equity in their home to finance large projects and initiatives. Local New York lenders are offering competitive rates and terms on traditional second mortgage products such as home equity loans and home equity lines of credit (HELOC).
In terms of traditional home equities in New York; a home equity loan offers a fixed interest rate product, with a pre-determined repayment period. Lenders will typically allow applicants with good to excellent credit to access up to 80% of their home’s loan-to-value. Home equity loans help to finance endeavors such as home improvement, home repair, debt consolidation or auto purchases. The biggest advantage of a home equity loan is that the product acts like a traditional fixed interest rate loan, so the borrower can anticipate monthly payments for a pre-determined term.
Another traditional 2nd mortgage product is the home equity line of credit (HELOC). The difference between a home equity line of credit and a home equity loan is that the HELOC is a variable rate revolving line of credit. The borrower accesses only the money needed to make ongoing payments and repays only the amount drawn against the line. Home equity lines of credit are ideal for perpetual expenses such as college tuition or medical expenses.
New York homeowners may be able to deduct the interest from their home equity if it’s used for home improvement or home repair. The borrower may deduct up to $100,000 of the home equity interest, however it’s best to consult with a tax advisor or accountant before calculating yearly taxes.