Monday, June 4, 2007

What is a home equity loan?

A home equity loan is a revolving line of credit based on the equity held in a property.

Equity is the cash value of a property or business minus any amounts owed on it in mortgages, claims, liens, etc.

An equity loan is secured by that cash vakue. The loan can be both fixed interest or variable rate.

Sometimes this type of loan is called a second mortgage.

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