Home Equity Loan
- A loan that can replace or be added to the first mortgage. This type of loan is generally used when a home owner wants to make renovations to the property.
Also known as an Equity Take Out (ETO).
secondary debt, additional mortgage, two debts
Related Terms and Acronyms
- Cash Out Refinance — Definition,
- The taking out of a new mortgage on the same property in which the amount borrowed is greater than the amount of the previous mortgage. The difference is taken out in cash.
- Equity — Definition,
- Ownership in an asset.
- The value of a property minus outstanding mortgage debt and other liens.
- Home Equity (HE) — Acronym, Very Important,
- The part of a home's value that the mortgage borrower owns outright; the difference between the fair market value of the home and the principal balances of all mortgage loans.
- Home Equity Debt — Definition,
- Debt secured by your home.
- Home Improvement Loan (HIL) — Acronym, Important,
- Home Loan — Definition,
- A loan used to buy a home is referred to as a "mortgage."
- Junior Mortgage — Definition,
- A loan that is subsequent to the claims of the holder of a prior (senior) mortgage.
- Mortgage (mtg) — Abbreviation, Important,
- A mortgage is a contract stipulating a specific real property, typically a residence or building, as collateral for a loan. The mortgage incurs a rate of interest that varies according to term and other features.
- Mortgage Application — Definition, Very Important,
- A document in which a prospective borrower details his or her financial situation to qualify for a loan.
- Second Mortgage — Definition, Important,
- A mortgage which ranks after a first mortgage in priority on a registered land title.
- Subordinate Loan — Definition,
- A mortgage whose priority is below that of another mortgage; i.e., a second or third mortgage or a home-equity loan.
- Tandem Loan — Definition,
- When one asset, usually a house, has two loans taken out on it.