Rhode Island Home Equity Loans
Whether it’s a home equity loan or a home equity line of credit (HELOC); second mortgage products are offered in Rhode Island at competitive rates and terms. Homeowners from Cranston (02920) to Providence (02910) are tapping into their home’s equity to finance projects such as a new roof, a car or debt consolidation. Rhode Island borrowers are also eligible to deduct home equity interest on their taxes if the money is used toward home improvement or repair; however it’s always prudent to consult with a tax attorney or accountant before making any deductions.
Although both products are based on using the equity in the borrower’s home; a home equity line of credit (HELOC) and a home equity loan offer two distinct advantages. A HELOC is variable rate revolving line of credit and a good fit for those who need a steady stream of cash for projects such as an extensive home remodel or to pay for college tuition. A home equity loan works well for borrowers who want to use the money in one lump sum such as paying for home repair, a new roof or for debt consolidation. A home equity loan functions more like a traditional fixed rate product so the borrower makes monthly, scheduled payments.