Home Equity

A home equity loan also known as a second mortgage term loan or equity loan is when a mortgage lender lets a homeowner borrow money against the equity in his or her home.

Home equity. Your home equity is calculated by subtracting how much you still owe on your mortgage from the. In other words it is the real property s current market value less any liens that are attached to that property. Home equity is the value of a homeowner s interest in their home.

Home equity is the market value of a homeowner s unencumbered interest in their real property that is the difference between the home s fair market value and the outstanding balance of all liens on the property. The property s equity increases as the debtor makes payments against the mortgage balance or as the property value appreciates in economics home equity is sometimes called real. This timeline could be as short as five years or as long as 15 years or more.

With a home equity loan you get all of the money at once and repay in flat monthly installments throughout the life of the loan. A home equity loan is a second mortgage that allows you to borrow against the value of your home. A home equity loan is a lump sum loan.