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Definition of Home Equity Loan from Mortgage Glossary

Home Equity Loan A home equity loan is borrowing against the equity you have acquired in your home. Lets suppose your original mortgage was $175,000.00, but your house is worth $225,000.00. The difference is $50,000.00. This $50,000.00 is the equity you have in your home. This is the portion you can borrow either in the form of a lump sum, or in the form of a line of credit. Home equity loans are used for all kinds of things. Such as, home improvement, college tuition, new cars, family vacations, etc. A good feature to consider when it comes to borrowing against the equity in your home, is that you do not have to borrow all of the equity all at once, if you choose not to. Of the $50,000.00 worth of equity we discussed in an earlier paragraph, it is not necessary to take it all if you don’t need it all. Suppose you only need $15,000.00 for a new roof or new windows, than you only need to apply for a home equity loan for that amount, and that amount only. Keep in mind, home equity loans and lines are tax deductible, so remember to deduct at tax time. Remember, continue to educate yourself to get the best deal possible, and shop around. The mortgage industry is very competitive and there are a lot of lenders out there hungry for your business, so let them fight over you, and go with the best deal possible. Refinancing Securing the Best Mortgage Rate				You'll be re-directed to Loan Savings Solution Web Site
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