- March 27, 2024
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A recent survey by TD Bank shows variations in how Floridians would use a home equity line of credit.
For example, 59% of Floridians surveyed say they would use it for home renovations. And 18% say they'd use the money for a major home purchase, such as an appliance, furniture or other big-ticket item.
Surprisingly, nearly a quarter of Floridians surveyed plan to use a home equity line of credit to purchase a vehicle. That's significantly higher than in other locations, says Bill Bonfanti, retail lending market manager for TD Bank's Florida operations.
That's because there are tax advantages for using a home equity line of credit. Unlike a car loan, the interest on a home equity line of credit is tax deductible if you itemize deductions on your federal tax return. “We have a lot of financially savvy borrowers,” says Bonfanti, who notes that many customers have financial planners and accountants who help them figure out their tax strategies.
There were some other surprises on the survey, too. Medical expenses remained low relative to other uses of home equity lines of credit, surprising given the elevated use of medical care by retirees in Florida.
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