What Is A Home Equity Loan

A home equity loan is a loan that enables you to take out a second loan using the home equity value of your current home. The amount of money you can finance on a home equity loan is determined by the value of your home less the amount you still owe on your first mortgage.

On a standard Home Equity Loan lenders will usually allow you to borrow anywhere between 80% and 125% of the current value of your home depending on how good your credit is and how much revolving debt you have. A home equity loan amount will use your equity as collateral, so if your house is worth $300,000 and you currently have a remaining mortgage loan balance of $150,000, you have $150,000 in equity. If you finance a 100% home equity loan, you would be able to finance 100% of that $150,000 and if you decide to finance the max possible amount of 125%, you might be able to borrow up to $187,500.

Home Equity Loans are great ways to get some extra money for a new car, pay off some revolving debt, get a new car or even paying your kids college tuition. A home equity loan is a great way to get some extra money with a great home equity loan rate lower than most rates you will pay in these other loans. Find a home equity loan today with no commitments.