home equity loan
Mortgage-based credit line
A home equity loan is a loan that uses a homeowner's equity—the difference between the home's value and any outstanding mortgage balance—as collateral.
The borrower receives a lump sum and repays it over a fixed term with interest.
Home equity loans are commonly used for major expenses like renovations or debt consolidation: We took out a home equity loan to redo the kitchen.
One who loans money
- borrowerOne who takes temporarily
- creditRecognition or payment deferral
- collateralSecurity for debt
- interestAttention, stake, or fee
repayment · qualification · application · approval · funding · disbursement · default · risk
Claim securing debt
- collateralSecurity for debt
- foreclosureLender seizes mortgaged property
- securedMade fast or obtained
- repossessSeize for unpaid debt
second mortgage · subordinate · title · deed · encumbrance · default · underwater · seizure
Gradual debt reduction schedule
- installmentPeriodic partial payment
- principalChief school administrator
- paymentFulfilling a financial obligation
- termFixed period or word
fixed-rate · monthly payment · payoff · prepayment · balloon payment · maturity · interest-only · delinquency
Risk evaluation and acceptance
- originationAct of bringing forth
- closing costsFees finalizing property purchase
- escrowConditional third-party deposit
- closingFinal stage of something
preapproval · documentation · title search · settlement · disclosure · fees · points · processing
Estimation of worth
- ownershipLegal right of possession
- residencePlace one inhabits
- homesteadFamily farm and dwelling
- dwellingPlace of residence
appreciation · market value · assessed value · comparable sales · real estate
lender
One who loans money
- borrowerOne who takes temporarily
- creditRecognition or payment deferral
- collateralSecurity for debt
interest · repayment · qualification · application · approval · funding · disbursement · default · risk · subprime
lien
Claim securing debt
- collateralSecurity for debt
- foreclosureLender seizes mortgaged property
- securedMade fast or obtained
repossess · second mortgage · subordinate · title · deed · encumbrance · default · underwater · seizure
amortization
Gradual debt reduction schedule
- installmentPeriodic partial payment
- principalChief school administrator
- paymentFulfilling a financial obligation
term · fixed-rate · monthly payment · payoff · prepayment · balloon payment · maturity · interest-only · delinquency · overdue
underwriting
Risk evaluation and acceptance
- originationAct of bringing forth
- closing costsFees finalizing property purchase
- escrowConditional third-party deposit
closing · preapproval · documentation · title search · settlement · disclosure · fees · points · processing
appraisal
Estimation of worth
dwelling · appreciation · market value · assessed value · comparable sales · real estate
- bankingbank, banks, ATM, ATMs, account
- debtdebt, creditor, owe, debtor, lender
- debtscredit card debt, medical debt, student debt, mortgage, debt
- personal financesavings, income, credit, investments, bills
- real estatehouse, apartment, property, sale, rent
- bills & debtsmortgage, credit card debt, medical debt, utility bills, rent arrears
home equity loanunsecured loan
Debt lacking pledged property
personal loan · unsecured credit · signature loan · credit card debt · payday loan
home equity loanhome equity
Ownership portion of residence
savings account · investment account · retirement savings · emergency fund · net worth
home, loan, homeless, equity, homes, hometown, equitable, loans, homeowner