Recently I learned how much it was going to cost to send my son to college. Soon after that, I felt faint of heart and needed to sit down. After sitting down at my desk chair and pondering the amount of debt we’d be in, I took a deep breath and began surfing the internet to learn more about ways parents pay for their children’s education.
Equity to pay for school?
Many parents and students have little choice but to pray for scholarship offers. If these are not possible then the most common option is to take out government student loans. Of course this leaves either the student or the parent in debt for years. I looked at various loan options, and the one I kept coming back to was a home equity line of credit. What is a Home Equity Line Of Credit anyway?
- When you are paying off a mortgage you are slowly building up your equity. This is an amount of money that is going towards paying off what you owe on your home. You can take out a loan against this amount.
- This equity can then be accessed as a line of credit you can use in other areas of your life.
- Home equity credit is tax deductible.
- Sometimes you can switch from an adjustable rate mortgage with a home equity line of credit to a fixed rate mortgage.
This equity I learned can be used really for whatever I wanted. Had I known more about it earlier I may have spent it on some long needed vacation or some home improvements. Luckily for us all I knew that by securing a home equity line of credit now I could spend it on something truly valuable I could hang my hat on. I could send my son to college.
This is your money to spend, but spend wisely.
Many home owners have other needs to address however. My neighbor I learned had used the benefits of a home equity line of credit a few years ago to consolidate his debt and pay off some lingering medical expenses. Others have used some of their equity and reinvested back into their home. A great option now is to make some “green” improvements such as solar panels. The government is giving significant tax breaks to homeowners who add energy saving home improvements to their houses.
I was able to find the lowest rates for home equity lines of credit through a website called www.real-estate-yogi.com. They are fantastic advisers for all questions related to your real estate motivations. I spoke directly with a representative for free. They went over my finances and what I wanted to do with my equity, and then introduced me to a lending company in my area of the country. Call real-estate-yogi.com today for your free consultation 1-800-987-1397.