If home improve-ments are in your future, consider a home equity loan. We also wanted to convert an old barn on the property into a garage and install an in-ground pool. Stannard obtained the loan through the NEA Member Benefits' Home Financing Program. The NEA Member Benefits program was able to get us a home equity loan for up to 90 percent. The popularity of home equity loans has skyrocketed since 1986, when Congress phased out tax deductions for most consumer loans, with the notable exception of home equity loans.
Most banks offer both home equity loans and home equity lines of credit.
The interest rate is typically fixed, meaning it stays the same throughout t the life of the loan. Home equity lines of credit are different. They're similar to credit cards-in that you get a set credit line on which to draw over time. Each month you can make the minimum payment or more if you wish. Lines of credit generally have variable interest rates that can change on a monthly or annual basis.