Home Equity loan
Home equity loan also known as equity loan ar second mortgage.
A consumer loan secured by a second mortgage, allowing home owners to borrow against their equity in the home.
The amount of loan is based on the difference between the homeowner’s equity and the home’s current market value. The mortgage also provides collateral for an asset-backed security issued by the lender and sometimes tax deductible interest payments for the borrower.
A home-equity loan is basically a line of credit secured by your home. When the line of credit is drawn down, the financial institution providing it places a second mortgage loan on your home until the loan is paid off, after which the you can use the loan to finance other purchases.
However, if the loan is not paid off, your home could be sold to pay off the remaining debt. Interest rates on such loans are usually adjustable rather than fixed and lower than standard second mortgages or credit cards.
June 24th, 2008 at 8:30 pm
Tuesday I was looking for sites about Home Owner Loans and specifically about home owner loans and I found your site.
June 25th, 2008 at 11:10 am
Good site I “Stumbledupon” it today and gave it a stumble for you.. looking forward to seeing what else you have..later
June 26th, 2008 at 5:19 am
May someone explain it a little bit deeper for me, please?