I'm looking to pull out equity in either a HELOC or home equity loan to consolidate credit card debt. Could I also use some of this $$$ to help pay some of my kids debt???
2007-05-29 05:15:12 · 7 answers · asked by elcampeon17 1 in Business & Finance ➔ Credit
It is not income, regardless of how you use it. Pay off your debt, your children's debt, or spend the money. Just don't borrow too much so that it is a large burden to re-pay.
2007-05-29 05:32:09 · answer #1 · answered by MR MONEY 3 · 0⤊ 0⤋
No.
This is not income. This is a loan, or a liability. You only have to report INCOME that you make. An equity loan or line-of-credit is not considered income since you'll be paying it back.
Generally, interest on a Home Equity Loan or LOC is tax-deductible.
The downside: If the housing market sours, you may find that you owe more than your home is worth.
2007-05-29 05:19:19 · answer #2 · answered by Scotty Doesnt Know 7 · 0⤊ 0⤋
No, it is not income. You are even allowed to deduct the interest on your taxes. You can ultimately use the money for whatever you want. Make sure you know what your interest rate will be and make sure you are comfortable making the required payments.
2007-05-29 05:24:56 · answer #3 · answered by redwine 6 · 0⤊ 0⤋
No, you will no longer be waiting to get one hundred% financing. you should take out a 2nd mortgage on your place, yet I doubt you will get 80% mortgage to nicely worth in this industry as lenders are very skittish. be conscious for a 2nd mortgage in case you get any encouragement from a lender. they're going to have it appraised at your cost and supply you an answer. be sure first that it's going to no longer enhance up your first mortgage.
2016-11-23 14:30:34 · answer #4 · answered by feldmann 4 · 0⤊ 0⤋
Why would you reprot something you are borrowing as income? Your not actually earning that money, you are simply using it as a loan against your house.
2007-05-29 05:50:04 · answer #5 · answered by Anonymous · 0⤊ 0⤋
No, because it's a loan you will have to pay back. You can use the money anyway you want.
2007-05-29 05:18:33 · answer #6 · answered by jim 6 · 0⤊ 0⤋
No. There is no way it is considered income or a capital gain at this point.
2007-05-29 05:23:05 · answer #7 · answered by professorc 7 · 0⤊ 0⤋