A Home Equity Loan
Independent Financial Advice | Hilltop real estate | Apartments for rent Gainesville | Secured Loan
A home equity loan is a finance facility that supplies funds against home or some other kind of property collaterals. Borrower can use the funds provided under home equity loans for any personal aspect like home improvement, debt consolidation to spend vacation and for purchase of property.
Here under this category of loan, home is treated as collateral that work as a security against the repayment of the approved amounts. A problem under home equity loan is that, borrower may lose his property if he doesn’t perform the set repayment schedules on time. The repayment period of home equity loans usually fall between five to fifteen years.
There are two main branches of home equity loan called first rate loan and variable rate loan. A first rate home equity loans supply the asked amount in a single installment and borrower has to repay the amount on a regular set of equal installments over a set period of time. Interest rates charged under first rate loans remain same through out the deal.
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Submitted by admin on Tue, 2006-12-05 05:08.