Equity Definition Home Loan
A home equity loan also known as a home equity installment loan or a second mortgage is a type of consumer debt.
Equity definition home loan. Your home equity is the difference between your property s market value and the balance of your mortgage. A home equity loan sometimes referred to as a second mortgage usually allows you to borrow a lump sum against your current home equity for a fixed rate over a fixed period of time. You can borrow against equity to buy an investment property renovate or achieve other goals. If you ve owned your home for a few years there s a good chance you ve built up some reasonable equity in your property.
A home equity loan is a type of loan in which the borrower uses the equity of his or her home as collateral.