Home Equity Loan

A home equity loan is a type of loan that allows homeowners to borrow against the equity in their property. The loan is secured by the home’s value and is typically issued as a lump sum with a fixed interest rate and repayment term. Home equity loans are often used for significant expenses like home improvements, debt consolidation, or education costs. 

The property’s equity is carefully assessed by the lender to determine the loan amount, ensuring that the loan is adequately secured by the homeowner’s existing equity.