On July 28, NJ101.5.com ran a Q & A featuring Sheri written by Karin Price Mueller who writes the Bamboozled column for The Star-Ledger. The topic was home equity and using it for college tuition …
Home equity borrowing for college tuition.
Q. What are the pros and cons of a home equity loan instead of a home equity line of credit? I’m thinking of using it for college tuition.
Here is an excerpt of Sheri’s answer:
A. Deciding the best place to take money to pay for college tuition is a hard decision that can stick with you for years after the student graduates.
You’re talking about taking funds from the value of your home to pay the tuition bills.
There are differences between a home equity loan and a home equity line of credit, or HELOC. With a HELOC, the amount of the loan is basically your credit line and you draw on the credit line only when you need the money, said Sheri Iannetta Cupo, a certified financial planner with SageBroadview Financial Planning in Morristown.