Money: Tuition: On the House?

With college-acceptance letters in the mail, hefty bills are sure to follow. If you're tempted to tap your home equity to help cover the tab, conditions are favorable. Real estate values are high, and interest rates low. Those not subject to the alternative minimum tax may also get a tax benefit. Here's a guide to the options. --By Ellen McGirt

 

HOME-EQUITY LINE OF CREDIT (HELOC)

HELOCs let you tap the equity in your home as cash. You use checks or credit cards linked to the HELOC to draw on the money as needed. The average interest rate nationwide is 5.95%,...

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