What is a home equity loan?

It is a type of loan with which a homeowner can obtain loans in cash based on the present value of their property (minus the mortgage amount which is still left to be paid off). So if fact it means that you can get a loan based on your property situation. You can use home equity loan to pay for your expenses like home renovation and new design, higher education, in fact long-term investments. A home equity loan creates a lien against the borrower's house. I think it is really useful tool in US, but unfortunately in my country it is rather difficult to get.

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