Equity Home Loans

In its simplest definition, an equity home loan means using your house equity as collateral in order to borrow money. Collateral means your house will act as a guarantee. In the case if you cannot pay the loan or defaulted too long on payment, the lender has the right to sell the house to get back the loan.

An equity home loan is a one off lump sum of money when you take up a loan. Usually, the loan period is between 5 to 30 years and the interest rates are fixed. The payment amount per month is fixed as well.

An equity home loan is marked for its distinct features and facilities. Here, you can raise a large amount of loan up to 100000. At the same time, you get the facility to repay the loaned amount up to maximum of 25 years, which is definitely a comfortable duration. However, you should always be aware of the fact that in an equity home loan, the amount of sanctioned money primarily depends upon the equity of your home.

If you’re considering an equity home loan, there is one very important point that you should be aware of. The loan is secured against your property, if you fail to make repayments there is a very real chance of you losing your property.

For equity line of credit, the loan period is usually shorter than home equity loan. Usually, it is between 5 to 15 years. During this loan period, you will not be able to increase the loan or repay the balance left in the loan. Do note, there is usually a minimum amount whether you decide to withdraw some money from the loan.