"The Business Report," WCBS-AM, New York,
February 18, 2002

Advantages of Home Equity Borrowing

MODERATOR: Time for the Businesss Report. It's being sponsored by E-Trade Financial. Janice Kirkel this morning from the Wall Street Journal.

JANICE: Thinking of borrowing against your home equity? There are some advantages.

MICHAEL MOSKOWITZ: Usually tax deductibility. The first $100,000 is definitely deductible. And even more can be deducted if you use it for home improvements.

JANICE: That was Michael Moskowitz, the president of Equity Now in New York. He warns, though, to be careful how much you borrow. When you borrow more than the value of your house, rates are very high. And housing should give other sectors of the economy a boost. Every time a home is sold, the buyer typically spends $6,500 to $8,500 in the first year on furnishings, improvements and decorating. I'm Janice Kirkel at the Wall Street Journal for WCBS News Radio 880.