What is a home equity loan?
Every time you make a mortgage payment, you’re putting money into your own pocket, but it’s not exactly like a checking account because you can’t take it out unless you sell your house. In the interim, however, your bank can loan you money based on the amount of cash you’ve put into your pad. The bank will do an appraisal of your property to figure out its value and then calculate how much equity you have in it. You can take out the money in a lump sum and pay the loan back with interest payments. Or you can get a line of credit from the bank, where you make payments on just the amount you actually withdraw. Get more info on home equity loans.
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