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Home Equity Loan
(redirected from Home equity loans)

   Also found in: Wikipedia 0.01 sec.

Home equity loan. A home equity loan, sometimes called a second mortgage, is secured by the equity in your home.

You receive the loan principal, minus fees for arranging the loan, in a lump sum. You then make monthly repayments over the term of the agreement, just as you do with your first, or primary, mortgage.

The interest rates on home equity loans are generally lower than the rates on unsecured loans. However, when you borrow against your equity you run the risk of foreclosure if you default on the loan, even if you have continued to make the required payments on your first mortgage.


Home Equity Loan

Same as Second Mortgage.



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An expert loan consultant, Pete Hitesman has personally originated more than a thousand home equity loans and credit lines.
Unlike most types of loans, including the personal loan, the interest you pay on home equity loans is tax deductible.
Although a drop in interest rates usually spurs loan demand, consumers keep shying away from home equity loans in Los Angeles County because of plummeting property values and the rush to refinance, said Southland banking experts.
 
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