What is a Home Equity Loan?

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What is a home equity loan?

Rounding it up

  • You can calculate your home’s equity by subtracting your home’s market value from your remaining mortgage balance.

  • Often referred to as a “second mortgage,” a home equity loan requires you to use the equity of your home as collateral and typically comes with relatively lower interest rates.

  • They’re a viable option for people looking to acquire a large sum of money for major expenses like home renovations, debt consolidation, or university tuition.

  • However, home equity loans come with risks; it’s important to learn them before taking the plunge.

7 min read

Lee Morgan
#home#home equity loan#mortgage#loan

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