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A home equity loan (sometimes abbreviated HEL) is a type of loan in which the borrower uses the equity in their home as collateral. These loans are sometimes useful to help finance major home repairs, medical bills or college education. A home equity loan creates a lien against the borrower's house, and reduces actual home equity.

Home equity loans are most commonly second position liens (second trust deed), although they can be held in first or, less commonly, third position. Most home equity loans require good to excellent credit history, and reasonable loan-to-value and combined loan-to-value ratios. Home equity loans come in two types, closed end and open end.

Both are usually referred to as second mortgages, because they are secured against the value of the property, just like a traditional mortgage. Home equity loans and lines of credit are usually, but not always, for a shorter term than first mortgages. In the United States, it is sometimes possible to deduct home equity loan interest on one's personal income taxes.

There is a specific difference between a home equity loan and a Home Equity Line of Credit (HELOC). A HELOC is a line of revolving credit with an adjustable interest rate whereas a home equity loan is a one time lump-sum loan, often with a fixed interest rate.

Home Equity Loan Subcategories Home Office > > Home Technology > Solar Energy > Home Technology > Climate Control > Home Technology > Electrical > Home Finance > Refinance > Home Finance > Mortgage > Home Finance > HELOC > Home Finance > Home Insurance > Home Finance > Home Loan > Home Finance > Reverse Mortgage > Home Equity Loan Articles Home Equity Loans: Funds Against Your Valuable Collateral by Johns Tiel Nov 21, 2008 Equity refers to the worth of your home after subtracting the outstanding mortgages and unpaid debts. The home equity loans are the loans that are acquired against equity in our ho... Home Loans: Realize Your Dream Of Owning Home by Dina Wilson Nov 20, 2008 Buying a home is a dream of every person. Constant rise in property rates has made it only a dream for anyone to achieve. With home loans you can realize your dream of being a home owner. Home loans are offered to people to accomplish their dream and... Recouping Some of the Lost Equity In Your Home by gary nealon Nov 18, 2008 In this current real estate market, it is important to capture every bit of equity that you think you have in your house. Prices are lower and so is the value. It’s not a sellers market because people are holding onto the idea that houses are worth... Check List For When Applying For A Home Loan by Barry Allen Nov 14, 2008 Buying a home involves many stages: finding a home, negotiating for the home, applying for a loan, completing the paper work, signing the purchase agreement, and moving in. Buying a home involves many stages: finding a home, negotiating for t... 10 Tips For First Time Home Buyers by Barry Allen Nov 14, 2008 Buying a home for the first time is a huge step forward in life. Unlike buying a laptop, stereo, or car buying a home is an investment towards a settled life and future. Buying a home for the first time is a huge step forward in life. Unlike ... Types of Creative Loans - Heloc Loans by Dwan Twyford Nov 12, 2008 Homeowners love HELOC loans – Home Equity Line Of Credit - because you only pay interest on what you borrow. For example – say you originally bought your property for $125,000. Over the years it has gone up in value - it’s now worth $200,000. I... To Rent Or Not To Rent, That Is The Question by Lara Sawyer Nov 10, 2008 I doubt that you will find a hotter and more discussed financial topic. Everyone seems to have a different opinion, and those who agree on one matter, disagree on the other. If you are a non-homeowner, you will probably believe you would be better of... Personal Loans Are Better For Small Home Improvements by Melissa Kellett Nov 03, 2008 It is usual that when needing home improvements, people generally resort to home equity loans. Yet this is only suggested for home improvements of significant value. For small home improvements it is best if you apply for a Home Equity Lines Of Credit For Greater Flexibility by Amanda Hash Nov 03, 2008 If you need a flexible source of funds where you can obtain the money you need and repay it according to your variable income, home equity lines of credit are the type of financial produc... Home Equity Loans Versus Home Equity Lines Of Credit by Devora Witts Oct 30, 2008 There is a difference between these two ways of obtaining credit. As great as the differences are, the uses are also radically opposite. The only thing in common is the equity that your home represents as collateral to the credit you get and the way ...