Home Equity Loans
Definition:
A loan that allows homeowners to borrow against the equity in their homes
If you’re looking for startup or expansion capital for yourbusiness and you own a home, consider getting a home equity loan onthe part of the mortgage that you’ve already paid off. The bankwill either provide a lump-sum loan payment or extend a line ofcredit based on the equity in your home. Home-equity loans carryrelatively low interest rates, and all interest paid on a loan ofup to $100,000 is tax-deductible. But be sure you can repay theloan–you can lose your home if you don’t repay.
