No. of Recommendations: 0

I agree with you that the 125% loan is a bad idea. The rate that this bank is charging is higher than some credit cards. (7.9-9.9%)

Although home improvement loans are tax deductible, I was under the impression that one had to actually 'improve their house' to qualify for the deduction.

As you pointed out too, four years vs. thirty is a big difference.

Also, once one does a 125% loan, where else can they turn to if they find their funds have dwindled? Don't tell me - are 150% loans around the corner, available for 18% APR?

- Lan
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