One of the biggest perks of owning a home is the equity it allows you to build. When you sell, that equity can translate to ...

A home equity loan allows you to borrow money by using your home's value as collateral for the loan. Here's a step-by-step look at how these loans work. Skip to Main Content ...

Lenders typically want to see 15 to 20% in home equity before approving you for a home equity loan. To illustrate, if your home is valued at $375,000, your mortgage balance should not exceed $300,000.

A home equity loan generally allows you to borrow around 80% to 85% of your home’s value, minus what you owe on your mortgage. Some lenders allow you to borrow significantly more — even as ...

How to qualify for a home equity loan. To qualify for a home equity loan—and get the best interest rate—you usually need to have a good to excellent credit score (that’s 670 or higher) and a ...

What Is a Home Equity Loan and How Does It Work? A home equity loan is where you borrow from the equity you’ve built in your home. Equity is based on your home’s current market value minus the ...

A reverse mortgage is a type of loan that allows homeowners ages 62 and older to borrow against their home equity, using their home as collateral. The loan amount you’re approved for is based on ...

Home equity loans are always offered at a fixed rate. However, ... Her work has been featured in outlets such as MarketWatch, Yahoo Finance, MSN and Nasdaq.

“So let's say your home is currently worth $700,000, then you can only have $595,000 in loans on it between your mortgage and a home equity loan.” » MORE: Home equity loan requirements Home ...

A home equity loan is a one-time lump-sum loan against your equity that you pay back in monthly payments, usually over 10 to ...

A home equity loan can be a useful financial tool. This type of financing may help you pay for home renovations, major repairs, or even consolidate high-interest debt. Yet some home equity loans ...

Say you have an existing home equity loan worth $50,000, your home is worth $400,000 and you have a balance of $200,000 remaining on your first mortgage. Your debt totals $250,000.