Home equity loans

What does it mean to get a home equity loan?

A home equity loan is a type of loan in which the borrower uses the equity of his or her home as collateral. Home equity loans are often used to finance major expenses such as home repairs, medical bills, or college education.

What is a home equity loan and how does it work?

Home equity loans work differently than traditional loans, acting as a line of credit. This means that the bank will approve to borrow up to a certain amount of your home, but your equity in the home stands as collateral for the loan. The interest rates are lower than they would be with a credit card.

What is the equity of a home?

Equity is the difference between what your home is worth and how much you owe on it. For example, if your home is worth $300,000 and you owe $100,000, you have $200,000 in equity. Over time, as you reduce the amount you owe on your home or the value of your home grows, your equity increases. It's that simple.

What is the interest rate on a home equity loan?
2. Home Equity Loan – As of June 18, 2015, the fixed Annual Percentage Rate (APR) ranges from 5.99% to 7.49% for 30-year second position home equity installment loan with loan-to-value (LTV) of 80% or less. Higher rates apply for higher LTV, certain property types, lower credit scores or other loan amount.

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Loan Amount

Home equity loans