Home equity line of credit

Assignment Help Financial Management

Reference no: EM13937901

A home equity line of credit (HELOC) is, loosely speaking, like a credit card for your home. You can borrow money by drawing down on the line of credit. But, because the borrowed money is for the purpose of your home, the interest is tax-deductible meaning that you can deduct the interest paid on this money from your income to reduce your taxes. If the current annual interest rate on a HELOC is 3.85% and your tax rate is 32%, what is the after-tax interest rate you will pay on any borrowings under the HELOC?

Make sure to input all percentage answers as numeric values without symbols, and use four decimal places of precision. For example, if the answer is 6%, then enter 0.0600.

Reference no: EM13937901

Questions Cloud

What are the total assets of the company at end of november : What are the total assets of the company at the end of November 2008? Prepare a statement of cash flows for November 2008. What was net income for November 2008?

Implement the data modelling for a database : Implement the data modelling for a database that is based on the following application scenario. The application scenario The online sale company Best Deal needs to implement a database to manage its business data. The company has delegated this t..

Benefits and challenges of integrating the operations : Apply a systems perspective to discuss why it is important to align the supply chain strategy with the design of the electronic business platform, and the benefits and challenges of integrating the operations of the two.

Compare two definitions of advanced practice nursing : Compare and contrast the two definitions of advanced practice nursing as defined by the American Association of Colleges of Nursing (AACN) DNP Essentials, the APRN consensus model, and as defined in your textbook.

Home equity line of credit : A home equity line of credit (HELOC) is, loosely speaking, like a credit card for your home. You can borrow money by drawing down on the line of credit. But, because the borrowed money is for the purpose of your home, the interest is tax-deductible m..

What is your annual after-tax return : If you earn 10% per year on your investments, but pay 35% in taxes on all of your investment returns, then what is your annual after-tax return?

Write the definition of the constructor in line 1 : Write the definition of the constructor in Line 1 so that the private member variables are initialized to 0.

How computer mediated communication is helpful : The task is to write a speech on how computer mediated communication is helpful for big management positions- for managers.

Make the tuition payments over the next four years : Paying for School Your daughter will start college one year from today, at which time the first tuition payment of $58,000 must be made. Assuming that tuition does not increase over time and that your daughter remains in school for four years, how mu..

User Account

All Pages