Definition Of Home Equity Loan

Home equity loans allow you to borrow against your home s value minus the amount of any outstanding mortgages on the property.

Definition of home equity loan. Home equity loan synonyms home equity loan pronunciation home equity loan translation english dictionary definition of home equity loan. How home equity works. A home equity loan is a lump sum loan. What does home equity loan mean.

A home equity line of credit also known as a heloc is a line of credit secured by your home that gives you a revolving credit line to use for large expenses or to consolidate higher interest rate debt on other loans footnote 1 such as credit cards. With a home equity loan you get all of the money at once and repay in flat monthly installments throughout the life of the loan. Home equity loan a loan secured by equity value in the borrower s home equity credit line home equity credit home loan consumer credit a line. Information and translations of home equity loan in the most comprehensive dictionary definitions resource on the web.

A heloc often has a lower interest rate than some other common types of loans and the interest may be tax deductible. Your first mortgage is the one you used to purchase the property but you can place additional loans against the home as well if you ve built up enough equity. This is sometimes referred to as a second mortgage because it is a new loan using the. Citation needed home equity loans are often used to finance major expenses such as home repairs medical bills or college education.

A home equity loan is a type of loan in which the borrower uses the equity of his or her home as collateral the loan amount is determined by the value of the property and the value of the property is determined by an appraiser from the lending institution. A home equity loan is a type of second mortgage. Home equity loans allow homeowners to borrow against the equity in. Define home equity loan.

This timeline could be as short as five years or as long as 15 years or more. A home equity loan also known as a home equity installment loan or a second mortgage is a type of consumer debt. Home equity loan definition is a loan based on the amount of equity a person has in his or her home. If a portion or all of a home is purchased via a mortgage loan the lending institution has an interest in the home until the loan obligation has been met.