equity loan


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equity loan

A line of credit secured by the equity in the borrower's home.It is open ended,meaning the borrower may take advances, pay down the line to reestablish it, and then take advances against it as needed; usually renewed on an annual basis, with adjustable interest rates tied to the lender's prime rate.(Often called a HELOC—home equity line of credit.)

References in periodicals archive ?
However, if the taxpayer took out a $250,000 home equity loan on the main home to purchase the vacation home, then the interest on the home equity loan would not be deductible.
If you sell your home at a later date, you will need to pay off the equity loan from the proceeds.
The Government insisted the scheme is supporting "responsible lending", with the average house price being bought under the mortgage guarantee scheme at PS151,597 and the typical price under the equity loan scheme at PS204,805.
"The scheme is designed to help home buyers secure low deposit mortgages and stagger the cost of buying a home, as they do not pay rent on the equity loan and it's interest free for the first five years.
"With over 10,000 reservations in four months, it's clear that the Help to Buy: Equity Loan is working well.
The Cranial Equity Loan was written over a four-month respite from work on The 89TH Temple, a novel of bullying and teen suicide set in Japan.
Interest on a home equity loan is deductible only to the extent of $100,000 of debt.
The proliferation of what Fed chairman Alan Greenspan dubbed exotic mortgage products such as adjustable rate loans, piggyback loans, interest only loans, and home equity loans, whose monthly payments can as much as double if interest rates rise to not unfathomable levels, as well as mixed economic signals such as choppy job growth, and the way real estate appreciation has exceeded salary increases have provided fuel for many an apocalyptic scenario.
The Jacksons also refinanced the home equity loan they had taken out to renovate a third house they inherited from Jacqueline's father.
The brochure, Putting Your Home on the Loan Line Is Risky Business, warns that regardless of whether a home equity loan is for a home repair, bill consolidation, or some other purpose, it is important to shop around.