Home equity loans, also known as second mortgages, allow homeowners to borrow against their property's value. They offer lower interest rates but come with risks, including potential foreclosure. They're best for large, one-time expenses and it's important to shop around for the best rates. The interest is often tax-deductible, but there are limitations. These loans increase debt and decrease home equity, so they should fit into long-term financial goals. Always consult a financial advisor before taking out a home equity loan.
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