Quote:
Originally posted by atomic mind
We just bought our house in February. Is there a certain amount of principal we have to pay down before we can get a home equity loan? We'd like to pay down some high interest debt, plus put a few home improvements on it, plus be able to deduct the interest...
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Excellent Idea. There is no specific amount of principal that you must pay, it just depends on the institution. Most institutions will only go 100% of the equity, but some will go up to 110% - I've seen some as high as 125%
As far as the appraised value, if you can get some of those home improvements done w/out the loan, you should have more room to play with when consolidating your high interest debt. (Assuming, of course, that the value of the home increases) Something you may want to consider in the future is a home equity line of credit. There are both advantages and disadvantages, but overall it is not a bad product to have.
I hope this answered your question, if not, post again!
Thanks for posting!