Home Equity Loan Definition
You may be familiar with the term "home equity loan," but you may not know the real definition of the phrase. A home equity loan is a loan that is borrowed against the equity in your home. The definition of "equity" is the amount of principal that has been paid into your loan as well as the amount of appreciation that your home has experienced since you first purchased it.
So, this means that a home equity loan is money given to you based on how much your home is worth as well as how much you've paid into it, minus interest. This money is essentially yours anyway, and you are allowed to access it as you see fit. Normally, banks will refinance your entire loan at a specified rate and term package, and then give you the cash you have in equity to use at your discretion.
The Right Home Equity Loan: Definition
At 4MortgageRateQuotes.com, we are the very definition of efficiency. We work with our premier lending partners to develop a network of lenders who will offer you low rates on home equity loans. The right home equity loan for you may not be the right one for someone else, so we will pinpoint the lenders who can serve your needs the best.
You may only want a home equity line of credit (HELOC) that you can access piece by piece, as you need it. Someone else, though, may need all the equity in his or her home for a major repair. We take all this into consideration when recommending lenders to you through our no-risk, no-obligation service. To find out what sort of loan you could qualify for, fill out our quote request form.