Home equity loans are a way of using the money that you've invested in your mortgage by
borrowing against it. Is a type of loan in which the borrower uses the equity in their home as collateral.
Is a second mortgage secured by your property. The creditor takes possession of the asset used as collateral and may sell it to satisfy the debt in the event that the borrower defaults.
Most home equity loans require good to excellent credit history. Two major types of home equity loans
are home equity loans and home equity lines of credit. They are secured against the value of the property and usually referred to as second mortgages.
A nonrecourse debt or loan, the borrower is not personally liable is secured by the real property.
Home equity loan may be a recourse loan or debt and the borrower is personally liable. This is very important since the borrower may remain liable for a recourse debt on a foreclosed property.
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.
