NEWSLETTERS
A home equity loan is a type of loan that allows homeowners to borrow against the equity they have built in their property. Equity is the difference between the home’s market value and the remaining balance on the mortgage. Home equity loans provide a lump sum of money with a fixed interest rate and a set repayment term, making them a predictable option for financing major expenses such as home renovations, debt consolidation, or education costs. Because the loan is secured by the home, interest rates are generally lower than those of unsecured loans. However, borrowers must be mindful that failing to repay the loan could result in foreclosure, making it crucial to borrow responsibly and ensure manageable repayment terms.