Home Equity Loan


Home Equity Loan

Home Equity Loan

A home equity loan, which can also be called a second mortgage, will let potential borrowers pull out money by using the equity in their home as collateral. A home equity loan can be attractive to borrowers because you can usually borrow a large amount of money and is easier to qualify for other loans since the home equity loan is secured by your house. Home equity loans can be used to pay for big expenses such as home repairs, medical bills, or a college education.


A home equity loan is given out in one lump sum and the borrower pays a monthly payment, just like a mortgage loan. A big advantage of a home equity loan is that the loan amount can be used on anything you want to use it for. One other advantage to a home equity loan is that the interest on a home equity loan could be tax deductible, depending on where you fall in the income bracket. Finally, one last advantage of a home equity loan is the interest rates are lower than most personal loans or credit cards. Contact a local lender to find out if a home equity loan is right for your current financial situation.