|
Liberty Rental Properties
|
|
|
Building Equity for the Future
· Owning a home is like investing in an automatic savings account. You accumulate savings in two ways. Every month, a portion of your monthly mortgage payment goes to the principal, reducing the overall loan amount. Each year, a greater percentage of your mortgage payment goes to paying down the principal.
· Second, your home appreciates over time, making it one of the very best financial investments.
· As your property appreciates, you build up equity in the home, increasing your household wealth.
· Many families elect to take out home equity loans to help put children through college, to purchase a second home, to make home improvements, to start a new business, to pay for medical costs or even to take vacations.
· And interest payments on home equity loans are fully deductible up to $100,000.
· By comparison, consumers who carry credit card balances cannot deduct the interest and can pay rates as high as 20 percent, more than double a typical home equity line of credit.
|