A lump-sum loan that uses your home equity as collateral. You receive the money at once to use as you wish, and you repay the money borrowed in monthly installments at a fixed interest rate. A home equity loan is considered a second mortgage. Because your home secures the loan, failing to repay it can result in foreclosure. See Home Equity Line of Credit
Glossary
Home Equity Loan
Your A‑to‑Z Glossary of Financial Terms
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