Half of local homeowners are ineligible for an equity line of credit because they owe more on their mortgage than their home is worth. 23 News real estate expert Jon Krause says thousands of owners borrowed against their homes to improve their standard of living. Most realize it is cheaper and easier to tap into their homes than to use their savings or take out a personal loan. Home equity loans are available, but Krause adds, you will be limited to a much smaller credit line as banks become stingy.
Interest on a home equity loan is tax deductible up to one hundred thousand dollars.