Dec 19, 2025 · A home equity loan is a loan for a set amount of money, repaid over time, that uses the equity you have in your home as collateral for the loan. If you can't pay back the loan, you may lose...

A home equity loan lets you borrow money using your home as collateral. You'll get a lump-sum payment and repay the loan with fixed-rate interest over a predetermined term.

How does a home equity loan work? A home equity loan, also known as a second mortgage, enables you as a homeowner to borrow money by leveraging the equity in your home. The loan amount is …

Nov 11, 2025 · How does a home equity loan work? When you take out a home equity loan, the lender approves you for a loan amount based on the percentage of equity you have in your home (among...

Jun 23, 2022 · How does a home equity loan work? A home equity loan functions much like a mortgage where you’re provided a lump sum up at closing and then you begin repayment. Every month, you’ll …

Jun 6, 2025 · A home equity loan lets you borrow against the equity you've built in your home, using your home as collateral. Equity is your home's market value minus your mortgage balance.

Jan 24, 2025 · How does a home equity loan work? As home values increase, so does the amount of equity available to homeowners. But home equity isn’t liquid wealth; the money is tied up in your...

How does a home equity loan work? Home equity loans allow homeowners to borrow a lump-sum of cash that they pay back in fixed installments over a predetermined period.

Aug 18, 2025 · Home equity loans are second mortgages that are secured by the borrower’s home and paid out in a lump sum. Lenders typically extend loans up to 85% of a borrower’s home equity and, …

Dec 6, 2023 · Home equity is calculated by subtracting the outstanding balance of any loans secured by the home from the current value of the property. Homeowners commonly use these loans for major …