Article: Tips make equity loan work hardest for you

Julie Adeleye loves her home. But, among other repairs, the Central Islip, N.Y., house needs new windows and siding.

How does a single mother with two daughters come up with the funds needed to pay for the work? Adeleye took out a $25,000 home-equity loan.

She isn't alone. Americans had $98.1 billion in equity-loan debt on their homes in 1997, up from $85.3 billion in 1996, according to the Federal Deposit Insurance Corp. The rates look attractive to consumers who want to consolidate debt - the top use for equity loans. Other uses include home improvement, emergency medical treatment or financing higher education. Lenders are attracted to home-equity loans because they are profitable ...

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