How Do Home Equity Loans Work?

A home equity loan is a type of second mortgage that allows you as a homeowner to borrow money based on the equity that you have accumulated on your home.

There are two kinds of home equity loans: line of credit and fixed-rate loan.

The duration of both types could range from five years to 15 years and the borrower will have to completely repay the loan if he sells his home.

The line of credit type of home equity loan, which is also known as HELOC, functions in the same manner as a credit card and it has a variable interest Read more