Here is a useful guide to home equity loans. A home equity loan is quite simply a loan against your house. Another term for a home equity loan is a mortgage or second mortgage. Home equity loans are also known as equity release schemes.
You are borrowing on what your house is worth. If your house is paid off, the term is "mortgage" and if your house is not paid off but has equity, the term is called a "second mortgage". For ease of understanding however, this article will refer to these loans as Home Equity Loans.
A home equity loan is a second loan that you take out on your home in addition to your mortgage. This is also called a second mortgage. This enables you to tap into your equity to get cash without refinancing your first mortgage. Many people think that the only way to access this cash is to sell their homes. The reality is that you can take out home equity loans to free it up without having to move at all!
Equity is the difference between the amount you owe on your current home mortgage and the current value of your home. Lot of finance companies today offer good deals on home equity loans, letting you borrow money based on the available equity on your home.
This can be explained further, suppose you sold your home, you will be left with a certain amount of money after paying off your mortgage, which would mean actual cash in your pockets. A home equity loan allows you to get that cash without having to actually sell your home or property.
The amount you can borrow is determined by taking a percentage of your home's appraised value and subtracting the balances of any outstanding mortgages. A home equity loan is fairly easy to get, if you are a homeowner. Some home equity loan companies will allow you to borrow up to 125% of what your house is worth at the current market prices, less the amount that you owe on your mortgage.
A home equity loan is usually a one-time loan, which is paid out in a lump sum. A home equity loan can be used for anything and is usually a fixed interest rate loan.
The cost of the loan will depend on many factors including your personal circumstances, the amount you wish to borrow and over what period you wish to repay back the loan.
Some good uses for home equity loans include debt consolidation, buying of a new car, home improvement, emergency medical expenses or luxury holiday.
People with poor credit ratings will find a Home Equity Loan more easily accessible to them because the lender is taking a lot less risk as the loan is secured against their home.
A Home Equity Loan will usually mean that you get better interest rates on the loan, but you should always remember that your house is at risk if you fail to repay the Home Equity Loan.
You may freely reprint this article provided the author's biography remains intact:
About the Author
John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the www.directonlineloans.co.uk website.
2nd Mortgage
...
2nd-mortgage.html
Ameriquest Mortgage
...
ameriquest-mortgage.html
Argent Mortgage
...
argent-mortgage.html
Bad Credit Mortgage
...
bad-credit-mortgage.html
California Mortgage
...
california-mortgage.html
Chase Manhattan Mortgage
...
chase-manhattan-mortgage.html
Chase Mortgage
...
chase-mortgage.html
Countrywide Mortgage
...
countrywide-mortgage.html
Current Mortgage Interest Rate
...
current-mortgage-interest-rate.html
Current Mortgage Rate
...
current-mortgage-rate.html
Exclusive Mortgage Lead
...
exclusive-mortgage-lead.html
Florida Mortgage Company
...
florida-mortgage-company.html
Florida Mortgage
...
florida-mortgage.html
Florida Refinance Mortgage
...
florida-refinance-mortgage.html
Free Mortgage Lead
...
free-mortgage-lead.html
Gmac Mortgage
...
gmac-mortgage.html
Green Point Mortgage
...
green-point-mortgage.html
Home Mortgage Banker
...
home-mortgage-banker.html
Home Mortgage Calculator
...
home-mortgage-calculator.html
Home Mortgage Interest Rate
...
home-mortgage-interest-rate.html
Home Mortgage Loan California
...
home-mortgage-loan-california.html
Home Mortgage Loan
...
home-mortgage-loan.html
Home Mortgage Rate
...
home-mortgage-rate.html
Home Mortgage Refinancing
...
home-mortgage-refinancing.html
Home Mortgage
...
home-mortgage.html
Interest Only Mortgage
...
interest-only-mortgage.html
Internet Mortgage Lead
...
internet-mortgage-lead.html
Lowest Mortgage Rate
...
lowest-mortgage-rate.html
Mortgage Banker Association
...
mortgage-banker-association.html
Mortgage Broker Lead
...
mortgage-broker-lead.html
Mortgage Broker
...
mortgage-broker.html
Mortgage Calculation
...
mortgage-calculation.html
Mortgage Calculator
...
mortgage-calculator.html
Mortgage Company
...
mortgage-company.html
Mortgage Interest Rate
...
mortgage-interest-rate.html
Mortgage Irwin
...
mortgage-irwin.html
Mortgage Job
...
mortgage-job.html
Mortgage Lead Generation
...
mortgage-lead-generation.html
Mortgage Lead
...
mortgage-lead.html
Mortgage Lender
...
mortgage-lender.html
Mortgage Loan Calculator
...
mortgage-loan-calculator.html
Mortgage Loan For Bad Credit
...
mortgage-loan-for-bad-credit.html
Mortgage Loan Lead
...
mortgage-loan-lead.html
Mortgage Loan
...
mortgage-loan.html
Mortgage Payment Calculator
...
mortgage-payment-calculator.html
Mortgage Rate Calculator
...
mortgage-rate-calculator.html
Mortgage Rate
...
mortgage-rate.html
Mortgage
...
mortgage.html
National City Mortgage
...
national-city-mortgage.html
Option One Mortgage
...
option-one-mortgage.html
Principal Residential Mortgage
...
principal-residential-mortgage.html
Refinance Home Mortgage
...
refinance-home-mortgage.html
Refinance Mortgage Loan
...
refinance-mortgage-loan.html
Refinancing Mortgage
...
refinancing-mortgage.html
Reverse Mortgage
...
reverse-mortgage.html
Second Mortgage
...
second-mortgage.html
Today Mortgage Rate
...
today-mortgage-rate.html
Well Fargo Home Mortgage
...
well-fargo-home-mortgage.html
Well Fargo Mortgage
...
well-fargo-mortgage.html
Wells Fargo Mortgage
...
wells-fargo-mortgage.html
An Infinity Mortgage
About The AuthorJenny Barclay majored in math. and economics, and obtained ...
an-infinity-mortgage.html
Refinance Mortgage
...
refinance-mortgage.html
10 Easy But Essential Steps For Home Selling Success
...
10-easy-but-essential-steps-for-home-selling-success.html
10 Ways To Boost Your Credit Score
...
10-ways-to-boost-your-credit-score.html
12 Credit Safety Tips Credit Watch
...
12-credit-safety-tips---credit-watch.html
4 Good Reasons To Get A Refinance Home Loan
...
4-good-reasons-to-get-a-refinance-home-loan.html
4 Things To Watch Out For When Choosing A Mortgage Company
We all know that there are a lot of mortgage companies...
4-things-to-watch-out-for-when-choosing-a-mortgage-company.html
40 Year Mortgages An Alternative To Interest Only Loans
Interest-only loans are quickly becoming a mainstream loan product....
40-year-mortgages--an-alternative-to-interest-only-loans.html
5 Magic Points Should I Buy Or Rent My Home
...
5-magic-points--should-i-buy-or-rent-my-home.html
5 Things How Credit Report Rating Can Save You From Ficti
Let us see the bigger picture why there is a stirr...
5-things-how-credit-report-rating-can-save-you-from-ficti.html
5 Things In Selecting The Best Mortgage You Should Know
About The AuthorPaul Kellum represents a full service mortgage broker / banker with a track re...
5-things-in-selecting-the-best-mortgage---you-should-know.html
5 Things To Look For In A Property Appraiser
...
5-things-to-look-for-in-a-property-appraiser.html
5 Tips For Savvy Use Of Your Home Equity Line Of Credit
Tapping your home's equity to pay college expenses, consolidate credit card debt or even to buy a new car or...
5-tips-for-savvy-use-of-your-home-equity-line-of-credit.html
5 Ways To Raise Credit Score
It's not as hard as you think to raise credit score. It's a well known fact that lenders will g...
5-ways-to-raise-credit-score.html
6 Key Points To Evaluate Online Lenders
...
6-key-points-to-evaluate-online-lenders.html
6 Reasons For Investing In Florida Investment Property
...
6-reasons-for-investing-in-florida-investment-property.html
6 Things To Consider Before Refinancing
Perhaps you’re a homeowner in need of some quick cash.Maybe you want to consolidate your debts so you h...
6-things-to-consider-before-refinancing.html
6 Things You Must Know Before Buying A Home
Before you commit your hard earned dollars to monthly mortgag...
6-things-you-must-know-before-buying-a-home.html
6 Ways To Buy Real Estate Without A Deposit
...
6-ways-to-buy-real-estate-without-a-deposit.html
7 Must Know Facts About Free Credit Report
<!--google_ad_client = ...
7-must-know-facts-about-free-credit-report.html
A Beginner S Guide To Buy A House
...
a-beginner-s-guide-to-buy-a-house.html
A Few Points About Interest Rates
...
a-few-points-about-interest-rates.html
A Fresh Start For Family Finances In 2005
While 40% to 50% of us make New Year’s resolutions on January 1—a ritual that has existe...
a-fresh-start-for-family-finances-in-2005.html
A Guide To Uk Buy To Let Mortgages
...
a-guide-to-uk-buy-to-let-mortgages.html
A Home Loan Can Help You Own Your Dream Home
Owning your dream home need not just be a dream. You can own it with a home l...
a-home-loan-can-help-you-own-your-dream-home.html
Add A Few Dollars To Your Mortgage Payment
...
add-a-few-dollars-to-your-mortgage-payment.html
A New Choice For Home Financing Correspondent Lenders
When you begin your search for a new home loan, one of the first things to consider is where ...
a-new-choice-for-home-financing--correspondent-lenders.html
Adjustable Rate Mortgages Understand The Benefits Compa 2
Adjustable rate mortgages can be very tempting to home buyers, yet they carry a great deal of uncertainty. Fixe...
adjustable-rate-mortgages---understand-the-benefits-compa-2.html
Adjustable Rate Mortgages Understand The Benefits Compa
...
adjustable-rate-mortgages---understand-the-benefits-compa.html
Adjustable Rate Mortgages Offer Alternatives For Home Buyers
About The AuthorW. Troy Swezey is the author of “ADJUSTABLE RATE MORT...
adjustable-rate-mortgages-offer-alternatives-for-home-buyers.html
Advantages And Disadvantages Of A Reverse Mortgage
...
advantages-and-disadvantages-of-a-reverse-mortgage.html
Adverse Credit Mortgage Loan Persistence Is The Key To 2
People with bad credit that are looking to get a home mor...
adverse-credit-mortgage-loan---persistence-is-the-key-to-2.html
Adverse Credit Mortgage Loan Persistence Is The Key To
...
adverse-credit-mortgage-loan---persistence-is-the-key-to.html
All About Secured Homeowners Loans
...
all-about-secured-homeowners-loans.html
All You Wanted To Know Of Bad Credit
...
all-you-wanted-to-know-of-bad-credit.html
Apartment Financing Explained 2
So you’re interested in entering the worl...
apartment-financing-explained-2.html
Apartment Financing Explained
...
apartment-financing-explained.html
Apartment Loan 101
So you’re interested in going into business as a property manag...
apartment-loan-101.html
Apply For Home Mortgage Loan Online With Bad Credit Th
So, you’ve found the perfect home. You’ve already decided where t...
apply-for--home-mortgage-loan-online-with-bad-credit---th.html
Apply For A Mortgage Keys When Applying For A Mortgage
About The AuthorWritten by Carrie Reeder, Owner of www...
apply-for-a-mortgage--keys-when-applying-for-a-mortgage.html
Apply For Home Mortgage Loan Online With Bad Credit Thi
...
apply-for-home-mortgage-loan-online-with-bad-credit---thi.html
Applying For A Home Loan
By Jakob Jellinghttp://www.cashbazar.comApplying for a home loan may not be the most exciting way to spend your time, ...
applying-for-a-home-loan.html
Applying For A Home Mortgage Loan Online The Pros And
If you have considered applying for a home loan mortgage online, there are a few...
applying-for-a-home-mortgage-loan-online----the-pros-and.html
Applying For A Home Mortgage Loan Online The Pros And Cons 2
...
applying-for-a-home-mortgage-loan-online---the-pros-and-cons-2.html
Applying For A Home Mortgage Loan Online The Pros And Cons
...
applying-for-a-home-mortgage-loan-online---the-pros-and-cons.html
Foreclosure Property Deals
...
foreclosure-property-deals.html
Foreclosure Scams To Be Aware Of
...
foreclosure-scams-to-be-aware-of.html
Foreclosures Nationally On The Rise
...
foreclosures-nationally-on-the-rise.html
Fortune 500 Budgeting For Our Personal Lives
...
fortune-500-budgeting-for-our-personal-lives.html
Foster Home Uses Pay Option Mortgage Loan For California
...
foster-home-uses-pay-option-mortgage-loan-for-california.html
Free Money Saving Auto And Home Loan Tips
...
free-money-saving-auto-and-home-loan-tips.html
From Debt To Financial Freedom
...
from-debt-to-financial-freedom.html
Get A Low Apr Mortgage Fast
About The AuthorMr Teddings is an independent advisor wh...
get-a-low-apr-mortgage-fast.html
Get Control Of Your Finances
...
get-control-of-your-finances.html
Get Free Mortgage Quotes From Top Colorado Mortgage Brokers
...
get-free-mortgage-quotes-from-top-colorado-mortgage-brokers.html
Get More By Offering Seller Financing
An example of seller financing: Years ago I bought a rental property, and nine months later ...
get-more-by-offering-seller-financing.html
Get Out Of Debt
...
get-out-of-debt.html
Get Paid To Market Your Real Estate Business
...
get-paid-to-market-your-real-estate-business.html
Get Rich With Mobile Homes
...
get-rich-with-mobile-homes.html
Get Started Managing Your Money
...
get-started-managing-your-money.html
Get That Low Apr Mortgage Fast
...
get-that-low-apr-mortgage-fast.html
Getting A Home Mortgage Is Quite Simple
...
getting-a-home-mortgage-is-quite-simple.html
Guide To Flexible Mortgages
...
guide-to-flexible-mortgages.html
Guide To Home Improvement Loans
...
guide-to-home-improvement-loans.html
Guide To Home Insurance
...
guide-to-home-insurance.html
Guide To Homeowner Loans
...
guide-to-homeowner-loans.html
Guide To Interest Only Mortgages
...
guide-to-interest-only-mortgages.html
Guide To Loan Terms
...
guide-to-loan-terms.html
Guide To Mortgage Terms
...
guide-to-mortgage-terms.html
Guide To Mortgages In The Uk
...
guide-to-mortgages-in-the-uk.html
Guide To Mortgages
...
guide-to-mortgages.html
Guide To Remortgages
...
guide-to-remortgages.html
Guide To Secured Loans
...
guide-to-secured-loans.html
Helpful Hints For First Time Home Buyers
...
helpful-hints-for-first-time-home-buyers.html
Mortgage For Those Twilight Years
...
mortgage--for-those-twilight-years.html
Mortgage Rehabilitation Of Financial Helplessness
About The AuthorAmanda Thompson holds a Bachelor’s degree in Commerce from CPIT and has completed her...
mortgage--rehabilitation-of-financial-helplessness.html
Mortgage Amortization
A mortgage is a technique that is used to create a lien on real estate by a contract. It is an instrument ...
mortgage-amortization.html
Mortgage Consumer Bill Of Rights
About The AuthorSyd Johnson is the Executive Editor of RapidLingo.com, ...
mortgage-consumer-bill-of-rights.html
Mortgage Cycling Brilliant Or Risky
...
mortgage-cycling--brilliant-or-risky.html
Mortgage Definitions
About The AuthorJeff Anderson knows his mortgages. He knows what to...
mortgage-definitions.html
Mortgage Free In 15 Years
About The AuthorCopyright 2004, by LoanResources.NetTom Levine provides a solid, common sense approa...
mortgage-free-in-15-years.html
Mortgage Glossary Of Terms
...
mortgage-glossary-of-terms.html
Mortgage Information Refinancing Second Mortgage Home
A mortgage is usually the biggest purchase that an indivi...
mortgage-information---refinancing--second-mortgage--home.html
Mortgage Information
...
mortgage-information.html
Mortgage Insurance Plans How Good Is Yours
...
mortgage-insurance-plans--how-good-is-yours.html
Mortgage Life Insurance
...
mortgage-life-insurance.html
Mortgage Loan Information Know The Basics When You Refi 2
...
mortgage-loan-information---know-the-basics-when-you-refi-2.html
Mortgage Loan Information Know The Basics When You Refi
...
mortgage-loan-information---know-the-basics-when-you-refi.html
Mortgage Prepayment Penalties Just Say No 2
About The AuthorJakob Jelling is the founder of http://www.cashbazar.com. Visit his website for the latest on pers...
mortgage-prepayment-penalties---just-say-no-2.html
Mortgage Prepayment Penalties Just Say No
One of the most common terms found in a new home ...
mortgage-prepayment-penalties---just-say-no.html
Mortgage Reduction Solutions
...
mortgage-reduction-solutions.html
Mortgage Sales Hit Problems
...
mortgage-sales-hit-problems.html
Mortgages After Bankruptcy Easier Than You D Expect
Many American consumers fear that they won'...
mortgages-after-bankruptcy--easier-than-you-d-expect.html