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Home Equity Loan
A type of loan in which a homeowner borrows against the equity in their property, typically at a fixed interest rate and for a fixed term.
More Details
A home equity loan is a type of loan that allows you to borrow against the equity in your home. A home equity loan typically has a fixed repayment term, which means you borrow a fixed amount of money and make fixed monthly payments for a set period of time.
Example
You want predictable monthly payments. With a home equity loan, you borrow a fixed amount of money and make fixed monthly payments for a set period of time. This can be beneficial if you want to know exactly how much you'll be paying each month and when you'll be able to pay off your debt.
Related Terms
Maturity Date
The date on which a loan or investment reaches its end and the principal amount is due to be repaid.
Beneficiary
A person or entity that is entitled to receive the benefits or proceeds of a trust, insurance policy, or will.
Jumbo Loans
A type of mortgage that exceeds the conforming loan limits set as eligible for purchase by government-sponsored enterprises.

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