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Finding money to help pay college expenses could be right under your feet. In fact, many students or their parent turn the equity in their homes into cash to pay for college rather than acquire student loans. A number of areas in the U.S. continue to see significant growth in home values each year. The difference between what you owe on your mortgage and the market or appraised value on your home (loan to value ratio) could provide you with the funds you need. To qualify for a home equity loan or line of credit, talk to a lender to get information on their credit granting criteria. Typically, the are willing to make a loan based on the loan to value ratio of your house as well as the financial and credit information the obtain from you. An additional benefit of a home equity loan or line of credit is that the money you borrow may be tax deductible. Check with a tax advisor to see if you would qualify for this tax benefit on your annual taxes.
|Jennifer Mathes, Ph.D.|