: A revolving credit line similar to a credit card where you borrow only what you need and pay interest only on that amount. Qualification Requirements
Home Equity Loans and Home Equity Lines of Credit | Consumer Advice equity loan mortgage
: The current market value of your home minus the remaining debt on your primary mortgage. : A revolving credit line similar to a
An equity loan (often called a "second mortgage") allows you to borrow against the value of your home that is not already tied up in a primary mortgage. Unlike a primary mortgage used to purchase a home, an equity loan provides a lump sum for expenses like home improvements, debt consolidation, or education. Unlike a primary mortgage used to purchase a
: Lenders often limit the combined total of your primary mortgage and equity loan to 80-85% of your home's appraised value.