Expert: Terry - 3/17/2004

Question
Terry

This is what I have, 5 years left of a 6.25% morgage (balance about 50K)

Should I get a lower rate home equity loan and pay off the home or just wait out the 5 years?

Is a home equity load tax deductable (interest) just as a morage is?

Thanks a lot for your time!

Answer
Hi Rich
If you need a tax deduction, then a home equity loan would allow you to deduct the interest. Most equity loans are at 4 to 5 percent. Your current loan is mostly going to your principal now, so it is paying it off faster, but you are not getting any deduction credit.
If you don't want to have a loan later than five years then you probably should just continue paying on it.
Thanks for the question and good luck
Terry