Article: Wise homeowner can use an equity loan to save money

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 ...

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