 | Newton Male
is Chairman of the Board of Prairie State Bank of Augusta, KS, with 12 branches in the Wichita area, a position he has held since 1983. He also currently serves as a Director for Western National Bank of Lenexa, KS and the First National Bank of Medicine Lodge, KS and Overland Park, KS. Previous positions held include two terms as Kansas State Bank Commissioner, President of Prairie State Bank, and Assistant Examiner for FDIC. Professional and community involvement comes second nature to Newton. Currently he is on Federal Affairs Committee of the Kansas Bankers Association, Director of Augusta Progress, Inc., and a member of the Augusta Historical Society and the Augusta Chamber of Commerce. In the past he has been very active with the Wichita Area Girl Scouts, Augusta School Board, Mayor of Augusta, Kansas House of Representatives, various positions with the Kansas Bankers Association, American Bankers Association, Butler County Community College Endowment Association, as well as Director positions with several other area banks. Newton has also done extensive work in Russia teaching Russian bankers how to deal with their banking crisis. This endeavor was sanctioned and performed in tandem with the Financial Services Volunteer Corps of New York and the US Agency for International Development. Newton can be contacted at the Prairie State Bank, 512 State Street, Augusta, KS 67010, by phone at (316) 775-5434, by fax at (316) 775-1790, or by e-mail at nmale@prairiestatebank.co |
Banking & Finance
2001-12-01 14:55:00
Using home equity
Question: What are the different ways I can use my home's equity?
Answer: First of all, we believe a definition of the term home equity is helpful. Home equity is defined as the difference between any debt on one's home and the market value. Home equity, can in many ways, be viewed as an investment, equivalent to money in the bank. If a person chooses to borrow and use this home equity, it can be done through a closed-end loan, with fixed payments, or a revolving line of credit loan. A borrower can be pre-approved for a home equity loan, enabling the borrower to purchase items when needed without waiting for loan approval or incurring additional loan origination fees.A closed-end loan might be used to consolidate debts; to replace high interest bills (resulting in a lower monthly payment); and to finance a vehicle purchase. The interest rate on a home equity loan is usually lower than the rate on a credit card or a consumer loan. A home equity revolving line of credit might be used for a child's educational expenses. Payment of educational expenses could be remitted as needed.Interest paid on a home equity loan may be tax deductible. Interest paid on a consumer loan is not tax deductible, in most cases. Consult your tax advisor for details.Caution should be exercised. Your home is your most valuable asset. Use your equity wisely. It's easy to use your equity…much like using a credit card. When borrowing against the equity in your home, give careful consideration to your needs vs. your wants.
