Loan TypesHomebuying Glossary
Home Equity Loan
A lump-sum loan borrowed against your home's equity, repaid at a fixed rate over a set term.
In plain English
A home equity loan lets you borrow a lump sum against the equity you've built, secured by your home as a second mortgage, typically at a fixed interest rate with predictable monthly payments.
Why it matters
It's a common way to fund a major renovation or consolidate debt, but since your home secures the loan, missed payments put your home at real risk.
Where you'll run into it
Guides and tools on TheBuyingPath that cover home equity loan in context.
Related terms
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