Is a home equity loan a mortgage?

A home equity loan is considered a second mortgage. Home equity represents the difference between what your house is worth and what you actually owe on your initial mortgage. With a $20,000 difference, a homeowner can get a second mortgage that give him/her access to that $20,000 equity in the home. Source: Bankrate: What Home […]

What is the definition of home equity?

Home equity is the current market value of a home minus any debt owed on the home. This is the percentage of the home that is owned free and clear of any debt. Source: Investor Words: Home Equity