Home Equity Mortgage Defined

What is a Home Equity Mortgage Loan?

Most banks and home loan lenders offer some type of home equity loan or HELOC (home equity line of credit). A home equity loan is Most lenders allow you to borrow up to 100% against your home's equity. The minimum home equity loan amount is usually about $7,500. For other lenders it’s $20,000. Maximum amounts vary, but a home equity loan amount of up to $300,000 is not uncommon in states such as California.

You can use a home equity loan for anything from home improvement to debt consolidation, investing, or sending a child through college. Whatever loan need you are considering, a home equity loan may be just what you need.

A home equity loan generally gives you the power to fully deduct the interest (check with your tax advisor regarding the deductibility of home equity interest and charges for your situation). With a home equity loan, you can receive the proceeds up front and make fixed monthly payments over time.

Before you apply for a home equity loan, be sure your credit report is up-to-date and that you've repaired any bad credit blemishes that might impeed your ability to qualify for a loan. The are several reputable lenders out there who can assist you in financing your home equity loan. Call around and talk to two or three and them choose which lender is best for you.