A "home equity loan" is loan or line of credit that is secured by the borrower's equity in his or her home. The home equity loan is usually a form of second mortgage (the first mortgage typically being the loan used to purchase the home), and the amount of the loan is determined by the amount of equity (the fair market value of a home minus the amount still owed on the home under the first mortgage). Home equity loans are typically adjustable-rate mortgages, and they usually have lower starting interest rates than other second mortgages. While home equity loans have become a popular way to borrow money, it is important to understand that the home which secures the loan could be sold in the event of default.

Top Searched Terms

Adjustable-Rate Mortgage Bond Yield Durable Power of Attorney for Healthcare EBITDA ETF FICO Score

Foreclosure Jumbo CD Like-Kind Property Mutual Fund P/E Ratio Probate