Unlock Your Homes Value 100 Ways to Use a Home Equity Loan

What is a Home Equity Loan? A home equity loan is a type of loan that allows homeowners to borrow money against the equity they have built up in their home. Equity is the portion of the home’s value that the homeowner truly owns, calculated by subtracting the remaining mortgage balance from the home’s current market value. Home equity loans work by using the equity in your home as collateral for the loan. The lender will extend you a lump sum of cash, which you’ll need to repay over a fixed term, typically between 5 and 30 years, with a fixed interest rate and fixed monthly payments.