| Posted By |
Message |
KimberlyScott
Graceyn=My World <3
Member since 10/08 4173 total posts
Name:
Kimberly
|
Home Equity Loans
Can a home equity loan be claimed on y/e taxes?
Message edited 2/19/2009 1:28:28 PM.
|
Posted 2/19/09 1:19 PM  |
| |
|
Long Island Weddings
Long Island's Largest Bridal Resource |
Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
|
Re: Home Equity Loans
yes, the interest is tax deductible.
|
| Posted 2/19/09 1:28 PM |
| |
|
MrsRJP
Happy Spring!!!
Member since 12/07 2151 total posts
Name:
Rena Marie
|
Re: Home Equity Loans
Yes we get a 1099 every year and deduct it from our taxes.
Message edited 2/19/2009 1:31:00 PM.
|
| Posted 2/19/09 1:29 PM |
| |
|
Bxgell2
Perfection
Member since 5/05 16438 total posts
Name:
Beth
|
Re: Home Equity Loans
Yes, the interest is deductible, but there are some con's to doing this. The pro is that you can pay off your high interest CC's at a lower rate... but... it is riskier. If you know that your DH will be out of work, and then, god forbid, something happens to your job, what if you can't pay the equity loan? If you fall behind on mortgage payments, you can attempt to file bankruptcy, in which case, your home is protected against the mortgage, but not against an equity loan.
During hard times like these, I wouldn't take a loan against my house unless I knew with absolute certainty that I would be able to pay off the equity loan. I'd rather have creditors come after me than the equity loan company coming after my home.
|
| Posted 2/19/09 1:46 PM |
| |
|
Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
|
Re: Home Equity Loans
first- you have to equity in your house
and like Beth said- if you default on a credit card- ok- it just effects your credit
if you default on a home equity loan- they can take your house
they are not easy to get right now- in fact most people I know that had them are getting them closed by the banks - they are too risky right now
|
| Posted 2/19/09 1:48 PM |
| |
|
Bxgell2
Perfection
Member since 5/05 16438 total posts
Name:
Beth
|
Re: Home Equity Loans
Posted by Beth
they are not easy to get right now- in fact most people I know that had them are getting them closed by the banks - they are too risky right now
This is true too - we got one a few months ago, and anticipate it will probably be closed, even though we don't have an outstanding balance anymore.
And when we got the equity loan, they valuated our home for MUCH less than we anticipated, lowering the equity in our home, thus lowering the amount available to withdraw.
|
| Posted 2/19/09 1:51 PM |
| |
|
