A home equity loan is a secured loan that provides a fixed amount of money, repayable over a fixed period, for individuals to make a substantial purchase using their home as collateral. Traditionally termed a ”second mortgage,” these loans are perfect for those who require a specific amount of money and want loan balance stability. Qualified members may borrow up to 100% of their home's equity. You might consider this over a home equity line of credit (HELOC) if you need a set amount for a specific purpose, such as paying taxes or credit card bills, tuition payments, or consolidating other higher-interest loans.
