Home equity loans are a way of using the money that you've invested in your mortgage by
borrowing against it. Is a second mortgage secured by your property. Two major types of home equity loans
are home equity loans and home equity lines of credit.
If you apply for a home equity loan and are granted, you can receive a check for the full amount of
the loan. You'll pay a fixed amount every month until the loan and the interest charge is paid off.
The lending company can force the sale of your house to recover their money if you don't make your monthly payments.
When you apply for and are granted a home equity line of credit, the lending company establishes a line of credit.
You may receive special checks or a plastic card with which to access your line of credit but you don't receive the
full amount at one time.
