These are popular ways to consolidate debt because the interest rates are usually low, and the interest that you pay can be tax-deductible1
. A home equity loan is a close-ended account that’s paid off in a specific period of time.
A home equity line of credit is an open-ended account, like a credit card, that you can borrow against (up to your limit) and repay. Remember though, that you’re borrowing against the equity in your home.Learn More About Home Equity Loan/Line of Credit