The dictionary defines equity as “The residual value of a property beyond any mortgage thereon and liability therein.” What this really means is that equity is the amount of cash your house is worth if it was sold today, and if the mortgage was paid off, and any other liabilities are paid off. […]

This information is the starting point for any home equity loan application. Educating yourself about interest rates, home equity and the application process in general places you in a better position should you decide to apply, and negotiating a home equity loan, the more knowledge you hold at the start of negotiations, the better rate […]

Many people like the sound of this type of loan, but neither understand the concept of existing equity, or know if they actually have any in their home. Equity is how much of your initial home loan you have actually paid back.
A rule of thumb to determine how much equity you might have, take […]

In essence, a home equity loan uses the current equity you have in your home as collateral for a second mortgage. The more equity you have, the more you can borrow. As with all finance provided against security such as property, if you do not maintain your payments, you run the risk of foreclosure on […]

Taking advantage of existing equity in your home through an equity loan might seem an intelligent choice, especially in times of low interest rates. However, before you take a home equity loan to pay for children’s education, buy a car or just pay off credit cards, you should educate yourself about the risks associated with […]