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How Do Home Equity Loans Work

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Part of the video series: Investment Finance Tips

How Do Home Equity Loans Work
Home equity loans are secondary loans made to the principle mortgage on a house. Understand how home equit… More
What Is Equity?
Equity is basically the amount of a home that is not leveraged by a mortgage. Learn about the differences … More
How to Use Home Equity
Using home equity, which is calculated by the value minus the mortgage balance, can be done by applying fo… More
What Is Home Equity Security?
Home equity security is essentially based on the principle that more equity means more security. Find out … More
About Home Equity Loan Interest Rates
Interest rates for home equity lines are varied based on the value of the overall home and how much is bei… More
About Home Equity Loan Pitfalls
Pitfalls of home equity loans include working with a disreputable banker, paying exorbitant fees and payin… More
How to Decide to Take Out a Home Equity Loan
Home equity loans are any money real estate has accrued over the time you have owned the property. So how… More
How Does a Home Equity Loan Work?
… More
Difference Between a Home Equity Loan & a HELOC
A home equity loan is generally a fixed rate loan, while the HELOC, or Home Equity Line of Credit, is like… More
Guideline for Home Equity Loans
Home equity loans allow you to borrow money by using your house or property as collateral. Because of the … More
About Shopping for Home Equity Loans
Shopping for home equity loans is an important process for a homeowner. Differences in interest rates and … More
About Fixed Home Equity Loans
Fixed home equity loans are loans with a fixed rate of interest, as opposed to variable interest rate loan… More
How to Build Equity
Knowing how to build equity in your home can save money over the long run, as you'll pay less interest on … More
About Home Equity Loans & Taxes
Home equity loans and mortgage payments are all considered tax deductible, which is why many home owners f… More
About the Hidden Costs of Home Equity Loans
The most notable hidden cost associated with home equity loans is the origination fee, which is a point th… More

Summary: Home equity loans are secondary loans made to the principle mortgage on a house. Understand how home equity loans work on both ends with tips and advice from an experienced financial adviser in this free video.

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By Patrick Munro
eHow Presenter

Contact: www.northstarnavigator.com

Patrick Munro's affinity for investing and financial matters began more than 20 years ago with business education and service throughout the ranks of the banking, insurance and...read more

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"This is Patrick Munro, financial adviser, talking about how does home equity loan rates work. Basically home equity loans are secondary loans made to the principle mortgage. The mortgage is what's called the primary position on a piece of real estate. That's when you first bought your home, you took out a mortgage to buy the house. You put a down payment down under the guide lines of the bank. Over time you start to pay your mortgage down and then you see that your house is growing in value normally over time as well. Then you'll see that the equity position that you do have in your house is quite substantial. What you're able to do is take out a secondary line of financing from your same bank or a different bank. That particular mortgage is a secondary position and therefore, has a higher interest rate normally then the primary mortgage. This is how home equity line of credit interest work. And this is financial adviser Patrick Munro."

eHow Article: How Do Home Equity Loans Work