What Is Home Equity?
Home equity is money available in a home, and calculated as property value minus mortgage balance(s), including line of credits and liens.
For example if a property is valued at $500,000 and the home owner(s) have a total mortgage balance of $300,000, then the home equity available is $200,000.
What Is A Home Equity Loan?
A home equity loan is a mortgage loan that is approved based on home equity. Traditionally, for home equity loans, income and credit are not considered for qualifying as the qualification is based on the equity in the home. Home equity lenders will, traditionally, lender up to 90% of the home value.