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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
Service Charge
A fee charged by a credit issuer or financial institution for processing transactions, usually added onto the total cost paid by a customer.
Bankruptcy
A legal process in which an individual or business has their assets liquidated or restructured in order to pay off creditors.
Student Loan
A type of loan provided by the government or other financial institution to help students and their families pay for their education expenses.

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