Home Equity For College Funds in Pittsburgh and Cleveland

With one child in high school and another in junior high school, Angela was worried that the savings accumulated so far for her children's college education wouldn't be enough. She realized that their finances could be especially tight in a few years when both kids were in college at the same time. In addition, she was concerned about paying the $25,000 of debt she had accumulated. Angela considered refinancing her house, which was valued at $150,000 with $40,000 remaining on her loan, but couldn't find a rate as low as the one she already had. Angela wanted to do everything she could to help her kids through college and she needed to find the best way to do it.

Solution:
Angela's house provides access to $80,000 of credit given the high amount of equity in her home. A Home Equity Line of Credit is a secured credit line typically with higher borrowing amounts and at lower interest rates than an unsecured personal loan based on the amount of equity in the home. Angela may benefit from the tax advantage of putting her home's equity to work for her.* Angela's Home Equity Line of Credit offers the flexibility of borrowing again and again. She can write checks against her credit line up to the specified credit limit without reapplying. With a lower monthly payment to pay off her bills and additional money when the time comes to pay for college expenses, she has access to the funds she needs. Another option available to Angela is a Home Equity Term Loan for $25,000. With it, she can consolidate her debt and free up cash flow for college or savings.

* The scenarios shown above are for explanatory and informational purposes only and do not necessarily reflect terms and conditions being offered by Dollar Bank. All loan applications are subject to Bank underwriting and credit standards and specific loan product guidelines. Consult your tax advisor regarding the deductability of interest.