What is a Home Equity Loan?
What is a Home Equity Loan? https://www.fundstiger.com/home-equity-loan/ Home Equity Loan is the loan that is available to you against the equity on a property. A type of consumer debt, home equity loan is also known as an equity loan, a second mortgage or a home-equity installment loan. It can be availed for any purpose and is available against both residential and non-residential property. The loan amount is calculated on the basis of the current market value of the property. It is a loan secured by the equity in your home. It means that a bank could let you borrow up to 75% or 80% of the equity in your home (the difference between the home’s market value and the outstanding loan balance on your home). In order to avail a home equity loan, you need to make sure that you have an excellent credit history, reasonable loan-to-value and combined loan-to-value ratios. Types of Home Equity Loans There are two types of home equity loans. Fixed rate loans Home Equity Lines of C...