Home Equity Loan Facts
A home equity loan is a secured loan that uses your house as collateral. Your equity is determined by calculating the market value of your house minus your mortgage. There are home equity loans (traditional loans) and home equity lines of credit (revolving).
Other People Are Reading
-
Interest Rate
-
Home equity loans typically have lower interest rates than unsecured loans.
Tax Deductible
-
The interest you pay on a home equity loan is tax deductible up to $100,000.
-
Risk
-
If you default on your home equity loan payments, you could lose your home.
Equity Lost
-
When you open a home equity loan, you significantly reduce your equity.
Fees
-
There can be a number of fees associated with getting a home equity loan.
-
