Many believe that home-equity loans are the best way to get fast cash when you need/want it.  After all, the interest rate on home equity loans are generally lower than those of credit cards or unsecured personal loans — which is the fast cash solution to most folks.  The interest will be a bit higher than the primary mortgage since this lender is in the back seat of collection should a bankruptcy occur.  Yet, the interest rates on home equity loans still tend to be very favorable because the lender is still insulated with regard to his risk.

So, is there another reason to consider a home-equity loan? 

Some financial and tax advisors would say yes.  Did you realize that any interest you pay on the first $100,000 of a home equity loan is tax deductible?  It is — and this is the good part — it is tax deductibe regardless of how you might have spent the money!  This figure can go up to $1,000,000 if the money you borrow is to put home improvements in place or buy an additional home.

Now, where else can you get full credit off of your taxable income (up to the limits that apply, of course), and still put money in your pocket?  Exactly.  If used right, a home-equity loan can be a slick tax trick — but don’t just take my word for it, talk your own own tax-advisor to get a more comprehensive explanation of the facts. 

While overall home prices are dropping fast and furious, resales were up in October, which is good news for those selling their homes.

The basic lesson we can take away from all of this is that “trends” don’t really mean as much as what is actually happening in your area, with the kind of home you’re looking to buy or sell.

In some areas, home prices are still rising, while in other areas, they’re flat, and in yet other areas, they’ve been plunging.

It’s like not counting your chickens before they hatch. Watch what home markets in your area are actually doing.