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Article: Wise homeowner can use an equity loan to save money
- Article from:
- Chicago Sun-Times
- Article date:
- November 21, 1986
- Author:
CopyrightCopyright (null) Chicago Sun-Times. (Hide copyright information)
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Home-equity loans are not the answer to every American's
consumer-credit problem, but some wise homeowners have used them to
save money.
For example, a north suburban homeowner took out a $60,000 line
of equity credit two years ago to pay off loans, fund his IRA and do
home improvements.
"I had just bought a new car, financed at 13 percent and the
prime was 9.5 percent," the homeowner said. "I paid off the car, a
few thousand in other debts, including a credit-union loan, paid
$4,000 for IRAs and had the driveway rebuilt with funds from the line
of credit."
Although the homeowner has $50,000 left in the line of credit
from Avondale Federal Savings Bank, he hasn't touched it since ...