Home Equity Loan
What is a Home Equity Loan:
A home equity loan allows a borrower to use the market value of a home as guarantee for a loan. Home equity loans are considered safe by lenders and therefore attract lower interest rates when compared to other types of real estate loans.
Since a Home Equity Loan a debt against your own property, which you are in actual possession of, a home equity loan is considered to be a secured debt. What this means is that if the creditor wants the money back that you have borrowed, if you cannot make that payment then the lender may require you to sell the property in order to recover their funds.
