Home equity loans and lines of credit are still a good option for borrowers.  Although the interest rate on home equity borrowing has gone up of the past year, the current rate is still better than most borrowing rates.  Whether you are looking to pay off credit cards, school debt, or other financial burdens,home equity lines and loans are still a viable option.

Home-equity lines of credit do have advantages over other types of debt. For one thing, 8 percent is a bargain compared with most credit cards. Lines of credit may also be the lesser of two evils when it comes to paying for college. As of July 1, rates on loans to parents for their kids’ college jump to 8.25 percent. A line of credit is slightly cheaper, and the interest is deductible on loans up to $100,000.

The positives are very obvious when it comes to borrowing against your home.  Of course, the interest rates aren’t as good as they were this time last year, but they are probably better than they will be this time next year. You should also consider that equity interest rates are several points lower than credit cards. Therefore, now is a good time to consider taking out a home equity loan or line of credit.

By James Nexus
Compare Your Loans Contributing Editor