Home Equity

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Home Equity Loan Info - A home equity loan is a loan secured by a home or second home.  This loan can be up to the amount of home equity the homeowner has invested in their home. Home equity is calculated by subtracting the amount of debt left in the mortgage loan from the fair market value of the home.

Home equity loans are often used to consolidate other debt with higher interest rates such as credit card debt, or to finance costly expenses such as a wedding or educational expense.  Two main types of home equity loans exist. The first type is the traditional second mortgage, and the second is a home equity line of credit.