Definitions for home equity loan
home eq·ui·ty loan

Princeton's WordNetRate this definition:0.0 / 0 votes

1. home loan, home equity credit, home equity loan, equity credit linenoun

   a loan secured by equity value in the borrower's home

WikipediaRate this definition:0.0 / 0 votes

1. Home equity loan

   A home equity loan is a type of loan in which the borrowers use the equity of their home as collateral. The loan amount is determined by the value of the property, and the value of the property is determined by an appraiser from the lending institution.Home equity loans are often used to finance major expenses such as home repairs, medical bills, or college education. A home equity loan creates a lien against the borrower's house and reduces actual home equity.Most home equity loans require good to excellent credit history, reasonable loan-to-value and combined loan-to-value ratios. Home equity loans come in two types: closed end (traditionally just called a home-equity loan) and open end (a.k.a. a home equity line of credit (HELOC)). Both are usually referred to as second mortgages, because they are secured against the value of the property, just like a traditional mortgage. Home equity loans and lines of credit are usually, but not always, for a shorter term than first mortgages. Home equity loan can be used as a person's main mortgage in place of a traditional mortgage. However, one cannot purchase a home using a home equity loan, one can only use a home equity loan to refinance. In the United States until December 31, 2017, it was possible to deduct home equity loan interest on one's personal income taxes. As part of the 2018 Tax Reform bill signed into law, interest on home equity loans will no longer be deductible on income taxes in the United States. There is a specific difference between a home equity loan and a HELOC. A HELOC is a line of revolving credit with an adjustable interest rate whereas a home equity loan is a one time lump-sum loan, often with a fixed interest rate. With a HELOC the borrower can choose when and how often to borrow against the equity in the property, with the lender setting an initial limit to the credit line based on criteria similar to those used for closed-end loans. Like the closed-end loan, it may be possible to borrow up to an amount equal to the value of the home, minus any liens. These lines of credit are available up to 30 years, usually at a variable interest rate. The minimum monthly payment can be as low as only the interest that is due. Typically, the interest rate is based on the prime rate plus a margin.

ChatGPTRate this definition:0.0 / 0 votes

1. home equity loan

   A home equity loan is a type of loan in which the borrower uses the equity of their home as collateral. The loan amount is determined by the value of the property, and the homeowner can borrow against the value of the home's equity, which is the difference between the home's fair market value and the outstanding balance of all liens on the property. This type of loan is also known as a second mortgage as it is often used by homeowners who have already paid off or made significant payments towards their primary mortgage.

WikidataRate this definition:0.0 / 0 votes

1. Home equity loan

   A home equity loan is a type of loan in which the borrower uses the equity in their home as collateral. Home equity loans are often used to finance major expenses such as home repairs, medical bills or college education. A home equity loan creates a lien against the borrower's house, and reduces actual home equity. Home equity loans come in two types: home equity term, which is a fixed term, and home equity line of credit which is variable. Most home equity loans require good to excellent credit history, and reasonable loan-to-value and combined loan-to-value ratios. Home equity loans come in two types: closed end and open end. Both are usually referred to as second mortgages, because they are secured against the value of the property, just like a traditional mortgage. Home equity loans and lines of credit are usually, but not always, for a shorter term than first mortgages. Home equity loan can be used as a person's main mortgage in place of a traditional mortgage, however you can not purchase a home using a home equity loan, you can only use a home equity loan to refinance. In the United States, in most cases it is possible to deduct home equity loan interest on one's personal income taxes.

Matched Categories

1. • Consumer Credit
   • Loan

How to pronounce home equity loan?

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How to say home equity loan in sign language?

Numerology

1. Chaldean Numerology

   The numerical value of home equity loan in Chaldean Numerology is: 1

2. Pythagorean Numerology

   The numerical value of home equity loan in Pythagorean Numerology is: 9

References

1. ^ Princeton's WordNet
   http://wordnetweb.princeton.edu/perl/webwn?s=home equity loan
2. ^ Wikipedia
   https://en.wikipedia.org/wiki/Home_Equity_Loan
3. ^ ChatGPT
   https://chat.openai.com
4. ^ Wikidata
   https://www.wikidata.org/w/index.php?search=home equity loan