EQUITY MAKES FOR SOLID IMPROVEMENTS

FOR IMMEDIATE RELEASE

EQUITY MAKES FOR SOLID IMPROVEMENTS

Building Equity Can Re-Build The Home

Parsippany, NJ, (September 25, 2000) - According to a recent survey by the National Association of Home Builders, 50% of US homeowners borrow cash to pay for home additions or improvements (based on a survey of 2,000 homeowners who completed remodeling jobs costing $5000 or more). A new kitchen, a remodeled bathroom and second-floor addition all cost thousands of dollars to improve. These costs prompt many homeowners to borrow money from mortgage companies, banks, and a variety of other lenders.
   
The most common home fix-ups polled by the American Express Retail Index are interior decorating, renovation and remodeling, landscaping and gardening. The costs are skyrocketing for homeowners with visions of improving the home with second story additions costing an average of $73,553, kitchens upwards of $31,090, bathroom additions reaching $13,918, home offices averaging $8,536 and deck additions topping out at $8,022.

According to Marjorie Trautman of Champion Mortgageâ, the collateral built up in one's home, either by applying for a home equity loan or a home equity line of credit, can provide the cash needed for these improvements.

"Many families in the past used credit card advances or other personal loans to pay for home improvements, but interest rates on personal loans are no longer tax deductible," notes Trautman. "The days of using personal loans for large remodeling projects are over. The new trend is using the home as collateral to borrow money through a home equity loan. This is beneficial as most home equity loans are tax deductible."

Trautman explains that the need for home improvements has reached a great demand today, to help increase the value of a home, for selling purposes or the need to house a growing family. The cost of these improvements has many homeowners forced to borrow the necessary money for the added large expense.

A home equity loan provides families with the unused money built up from within the home to pay for large expenses, such as home improvements and provides for lower monthly payments, lower interest rates and is often tax deductible.

In addition to home improvements, Trautman explains that home equity loans can also benefit in these common areas:

·Debt Consolidation - According to the Consumer Credit Counseling Service, Americans have too much debt if they are spending more than 15 percent of their net income to repay unsecured credit (credit cards, students loans, etc.).
·Higher Education - The home can help with covering the costs of an education, especially if homeowners are ineligible for financial aid.
·Medical Costs - Instead of draining savings accounts to pay high deductible costs or for procedures not covered by health insurance, use the home to receive the appropriate treatment and to cover any extra costs.

"As the presidential election approaches, the remainder of the year offers a prime opportunity to tap into home equity, as interest rates will most likely remain steady until 2001," claims Trautman. "The time is opportune to receive the lowest interest rate possible to improve or remodel the home and consolidate credit card debt before rates may rise again."

For more information, financial assistance and interactive financial resources, visit http://www.championmortgage.com.

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