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So, if i wish to get the home equity loan as well as place it upon the tall produce assets cd account? Is this feasible?
Related solution post:
- Does a 4.9% credit card loan beat a 9.2% home equity loan in terms of money savings and tax benefits?
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- Can I get a home equity loan at the same time or immediately after I get a home loan?
- Can you change a home equity loan to a personal loan?
- Home equity loan or refinance existing home loan?
It’s doubtful that you can find a CD which will pay as much interest as you will pay to your home equity line. Hence, you will end up in the negative on this arrangement. Of course, you can deduct the interest from your federal income tax return, but you will also have to include the interest earned as taxable income. You’re still in the hole.
Chances are you’d be paying higher interest on the loan than you’d get on the CD. And you’d have to be paying back the loan each month during its term, but you’d have all the money tied up in a CD so would have to find the money somewhere else to make the payments.