Home Equity
Loans
Home equity is
the difference between the amount owed on the loan and the current market
value of the home or property. Equity may be acquired by paying down the
existing loan balance, by rising property values, or usually by a
combination of both.
Home Equity
Loans (second mortgage loans) allow homeowners to take advantage of their
equity and use the money borrowed for any purpose. Many homeowners
decide to take out a second mortgage so as not to disturb their current
first mortgage that may be at a low rate or that may have a prepayment
penalty.
