Home Equity Loan

Home Equity Loans are a consumer loan secured by a second mortgage, allowing the home owners to borrow against their equity in the home for a variety of uses, usually to make improvements to their home.  The loan is based on the difference between the homeowner’s equity and the home’s current market value as determined by an appraisal.  The mortgage also provides collateral for an asset-backed security issued by the lender and sometimes tax deductible interest payments for the borrower.