What is a Home Equity Loan?

A home equity loan uses the equity of the home as collateral for a lump sum payment. The terms of the loan are much like that of a mortgage and may carry points or mortgage insurance.

What is the Value of Home Equity?

Homeowners can borrow against their home’s equity to pay for home repairs and renovations, school tuition, medical bills, etc.

Requirements for Home Equity Loans

The borrower for a home equity loan must have good to excellent credit and equity in the home. The loan must be repaid as a mortgage and is very similar to a second mortgage, although it must be repaid over a shorter period of time than a traditional mortgage.

No related posts.