Home Equity Loan

(redirected from Home equity lending)
Also found in: Dictionary, Thesaurus.
Related to Home equity lending: Home equity loans

Home Equity Loan

A loan in which the one borrows against the value of one's home. That is, the collateral of a home-equity loan is one's house. The amount in these loans is generally the difference between the homeowner's equity in the house and the market value of the house. The homeowner receives the amount of the loan in a lump sum, and may use it to finance other purchases or ventures. If a home-equity loan is not paid off, the lender may take possession of and sell the house in order to pay for the loan; this can occur even if the homeowner continues to make payments on his/her mortgage. These loans generally have variable interest rates, which are nonetheless still lower than most other lines of credit. Home-equity loans are sometimes called second mortgages or equity loans. See also: Reverse mortgage.

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.

References in periodicals archive ?
10 /PRNewswire/ -- Lightyear Capital, a private equity investment firm that manages $2 billion in assets, said today that it has completed its previously announced acquisition of DeepGreen Bank's ("DeepGreen") home equity lending platform and operations from Cleveland-based Third Federal Savings and Loan Association, MHC.
An enhanced home equity lending product is the latest example of the continued success of our efforts.
We are continuing to experience growth in all areas of the business, especially on the wholesale side and in home equity lending.
As a lender that has a specialized focus in home equity lending, we are continuously striving to further educate the industry and develop innovative ways to incorporate home equity as a primary business focus for lenders and brokers," said Lorne Lahodny, president and CEO of Secured Funding.
Winstead's Mike O'Neal and Brian Morris are scheduled to present on the new legislative and regulatory updates and current litigation issues relating to Texas home equity lending laws.
Angela's addition to the DeepGreen team enables us to strengthen our positioning as a market driven innovator in home equity lending," Sy Naqvi, chief executive of DeepGreen Financial said.
As Secured Funding generates record business into 2006, we continue to redefine home equity lending by improving efficiency and strengthening connections between the customer, broker and investors," added Lahodny.
Dorado wants to help PNC focus on what the bank does best -- driving a high level of volume, service and responsiveness in home equity lending.
DeepGreen Financial, a leader in home equity lending and business process outsourcing, was presented with the Inman Innovator Award in the Mortgage Technology category Wednesday at the Real Estate Connect conference in San Francisco.
The AVM Module eliminates the need for an appraiser and helps Mark IV users quickly and accurately determine home values - either when processing mortgage applications or in home equity lending," said Steve Sargent, president and CEO of North Richland Hills, Texas-based Cypress.
However, the company recently announced that it has entered into a definitive agreement to sell its sub-prime home equity lending group, Centex Home Equity Company LLC (CHEC).

Full browser ?