Taking advantage of rising home prices, a record number of Las Vegas home owners are choosing home equity loans or lines of credit as a source of less expensive funds. A home equity line of credit gives the owner of Las Vegas homes the right to borrow up to a certain amount, either all at once or as needed. You only have to pay interest on the amount you actually withdraw. Home equity loans on the other hand, provide borrowers with a lump sum all at once and carry a fixed interest rate. The rise in home equity lending may reflect a more fundamental shift in consumer funding preferences. Home equity lending is competing very effectively with credit cards in the consumer marketplace. For Las Vegas real estate borrowers, the advantages include lower interest rates and tax deductibility. On an interest rate basis alone, home equity lines of credit look especially attractive as compared to credit cards. Interest on the first $100,000 of a home equity line of credit is usually tax deductible. If you own residential real estate in Las Vegas, it may be wise to consult your accountant about the advantages of these options.

This entry was posted by Michelle Sterling on Thursday, January 27th, 2005 at 9:36 am and is filed under General. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.