Home equity loans let you borrow using the equity you’ve built up in your home as collateral. You can often borrow more money at a lower interest rate than with other types of loans. And, in many cases, you can deduct the interest you pay on the loan when you file your tax return, reducing the actual cost of borrowing still further. Most of the other interest you pay, on car loans or personal loans, for example, isn’t deductible. With the new tax law they may be limitations on tax deductibility. With a home equity loan, you borrow a lump sum, usually at a variable rate of interest, although some fixed-rate loans are available. You pay off the debt in installments, just as you repay your mortgage, with some of each payment going toward the interest you owe and the rest toward the principal, or loan amount. At the end of its term, or payment period, the loan is retired. You may have to pay closing costs on your loan, just as you did for your first, or primary, mortgage. But lenders may offer loans with no up-front expenses as part of a promotional deal. You might also be offered   Read more…