Donna bought her home several years ago for $200,000. She paid $20,000 down on the purchase and
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Donna bought her home several years ago for $200,000. She paid $20,000 down on the purchase and borrowed the remaining $180,000. When the home is worth
$280,000 and the balance on the mortgage is $120,000, she borrows $110,000 using a home equity loan. She uses the proceeds of the loan to acquire a new car, pay off some credit card debt, and pay her children’s tuition at a private school. She pays
$12,600 in interest on the home equity loan.
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Related Book For
Concepts In Federal Taxation 2011
ISBN: 9780538467926
18th Edition
Authors: Kevin E. Murphy, Mark Higgins
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