Home Equity Line of Credit
Property Ownership Gives You Advantages
As a homeowner,
you have an investment in real estate that can provide economic
benefits for you well into the future. But home ownership
can also open the door to financial advantages for you today. With
a home equity line of credit from American Financial Services,
you can tap into substantial buying power to meet other financial
needs including home improvements, important purchases, college tuition,
and medical or other expenses.
How It Works ...
A home equity line of credit allows you to establish a line of credit
based on the difference between the appraised value of your home
and the amount still owed on it. This financing option offers you
several advantages:
Lower
interest rate: Because the loan is secured by the equity
in your home, you typically get a much better rate than you could
with an unsecured consumer loan or credit card.
Immediate access to funds: You can pay for purchases as you make them using
the convenience of checks. You avoid the additional paperwork, delay, and cost
involved in taking out a new loan every time you make a purchase.
Affordability and flexibility: You can access your credit whenever you need
it. As long as you make the minimum monthly interest payments, you can repay
the loan principal as you wish. No matter how much credit you have, you only
pay interest on the amount you use.
Possible tax advantages. Interest payments on your home equity line of credit
may be fully tax deductible. Consult your tax advisor to find out about the
potential tax benefits that you may realize.
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