Equity refers to the current market value of your home minus the total amount you owe on your mortgage.

It’s important to remember that since a home equity loan uses your home as collateral, failure to make loan payments means you could lose your home to foreclosure. Also, depending on the lender, you could pay application fees, appraisal fees,…

A home equity loan typically features lower and fixed interest rates, and it’s typically easier to qualify. Your monthly payments will also be more affordable, and your taxable income will be lower.

A home equity line of credit is similar to a second mortgage, which enables you to access the loaned funds at any time you choose, instead of all at once. You should think about a HELOC if you need money…

A home equity loan or home equity line of credit (HELOC) are mortgages that enable you to borrow against the value of your home, minus your remaining mortgage, by using your home as collateral.

These loans do not meet the borrowing guidelines established by Fannie Mae and Freddie Mac. This type of loan may be available to borrowers who otherwise don’t qualify for a conventional loan.