Business Startups. A Home Equity Loan or Line can provide the much needed and hard-to-get start-up capital for your business.   Lower Interest Rates. You can save money with a lower interest rate compared to most credit cards, auto loans, and unsecured lines of credit. Tax Advantages. In many instances, the interest paid on a Home Equity Loan or Line is tax deductible. Consult your tax advisor for details. Education. For many people, a Home Equity Loan or Line is the only means available to finance college, graduate or technical schools, or other educational endeavors. Emergencies. It's comforting to know that the financial power of your home can help during an illness, loss, or other emergency. Debt Consolidation . Using your home's equity to pay off high-interest rate debt, such as credit cards, is the smart way to improve your cash flow. Home Improvements. Investing the money in home improvements actually helps to build equity while borrowing against it.