Home Equity Loan

A Home Equity Loan is a type of loan that allows homeowners to borrow money against the value of their home. Essentially, as you pay off your mortgage or if your home's value increases, you build equity, which is the portion of the home you actually own. Lenders will offer you a loan based on that equity, often with a fixed interest rate. Home Equity Loans provide a lump sum of money that can be used for various purposes, such as home improvements or debt consolidation, but it's important to remember that your home serves as collateral for the loan.