A home Equity Loan allows a homeowner to borrow money against the value of their current home. A lender will allow you to borrow up to a certain amount of your home and uses the equity in your home as collateral against the new loan. Also know as home equity lines of credit or second mortgages, these loans offer lower interest rates than credit cards. So, if you are looking to make home improvements, consolidate high-interest rate debt or need cash fast, it may be a viable option.
Use the Home Equity Loan Calculator to Find if You May Qualify