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Compare home equity tax savings with this calculator

Learn if a home equity loan or line of credit is right for you.

What is a home equity loan?

Home equity loans are loans available to existing homeowners aside from their mortgage. You may get extra funds when you need them with a home equity loan or a home equity line of credit, but what sets them apart?

Home equity loan

  • A home equity loan is a single lump sum loan with predictable payments.
  • It typically has a fixed interest rate.
  • It allows you to borrow once, and make monthly payments.
  • It's great for helping with single large expenses.

Home equity line of credit (HELOC)

  • A home equity line of credit (HELOC) is a pool of money available for flexible spending.
  • It typically has a variable interest rate.
  • You can pay off and borrow from as needed, similar to a credit card.
  • It's great for multiple small expenses over a period of time.

Tax differences

Use this helpful calculator to learn what the tax differences could be between a Home Equity Loan and a HELOC. It’s illustrative and for educational purposes only. Using the [BASIC] tab, simply enter the amount of the loan, interest rate, months to pay off and upfront costs. Using the [ADVANCED] tab, you may enter your tax rate if you wish. The calculator will return details about the tax savings for each type of loan.

The information in this material was obtained from various sources. We believe it to be reliable and accurate; however, we do not warrant the accuracy or reliability of the information contained herein.




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