NEWSLETTERS
A home equity loan allows homeowners to borrow against the equity they have built in their property, providing a lump sum of money with a fixed interest rate and repayment term. Equity is the difference between the home’s market value and the remaining mortgage balance. These loans are often used for major expenses such as home renovations, debt consolidation, or education costs. Because they are secured by the home, they typically offer lower interest rates compared to unsecured loans. However, since the property serves as collateral, failure to repay the loan could result in foreclosure. It’s important for borrowers to assess their financial situation and ensure manageable repayment terms before taking out a home equity loan.