Buying a house provides serious tax shelter advantages. Expenses related to home ownership can be tax deductible. An additional advantage to owning a home is the tax-free sale. The next benefit you can enjoy is the ability to borrow tax-free against home equity without having to sell your house. Home ownership should be a priority of every personal financial plan.

Without a doubt a line of credit loan has several advantages. You have the money available when you need it but don’t have pay interest on it if you don’t use it. Any costs to establish a line of credit are usually small versus refinancing which usually includes origination fees and closing costs. 

Finally, a line of credit, sometimes called an LOC, can be repaid easily but you still have the option of accessing the LOC again without a new application being formally submitted.  The costs are also significantly lower versus a personal loan or credit card.

Other methods include applying for a 2nd mortgage sometimes referred to as an equity loan or home improvement loan. These loans mostly have specific terms for the amount of time to pay back the loan and generally have a fixed interest rate.

See you tomorrow with more, Kate, your mortgage translator on a crusade helping homeowners understand why they should ask about mortgage rate lock.

Regarding tax implications, it is always recommended that you consult a qualified financial adviser.

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