Everything you need to know about home loans in one place. Use our "frequently asked questions" section to learn everything about mortgages, refinancing, home equity lines of credit and more.
A Home Equity Line of Credit, also known as a HELOC, allows you to use the value you’ve built up in your home in order to secure a revolving line of credit. Individuals and families often use a HELOC to pay for serious expenses (like healthcare or college tuition) or to consolidate high-interest loans (like credit card debt).
Read MoreHome equity loans, which are sometimes known as second mortgages, allow homeowners to take out a loan against the equity in their home. Home equity loans are divided into two types. The first is a home equity loan, which is a traditional, fixed rate loan. The other is a home equity line of credit (HELOC). Since one of our other FAQs addresses the details about HELOCs, in this one, we’ll stick to talking about regular home equity loans.
Read MoreIn basic terms, home equity is the amount of financial value that a homeowner has built up in their home. To discover how much home equity you have, take your property’s market value and subtract your outstanding loan balance. As you pay off your mortgage (or your home’s value increases), the amount of home equity you have increases.
Read MoreA home equity line of credit (HELOC), is a pool of credit you can draw from using your home equity as collateral. Your home equity is the difference between the value of your home and the mortgage balance. So if your home is valued at $250,000 and your mortgage is $150,000 then your home equity is at $100,000 ($250,000-$150,000).
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