What Is Home Equity?
May 25, 2008 10:24 am HomeMany people get confused by exactly what is home equity and how does a home equity loan work. The principle behind it is fairly simply to understand. If you sell your home and pay off the mortgage, what you have left is the equity. If you don’t want to sell off your home, then normally you wouldn’t be able to get this left over money. A home equity loan is a way of letting you have this amount in the form of a loan which is secured on your home. So you must always keep up the repayments otherwise you could lose your home.
