The current market value of your home less what you owe on it constitutes home equity. For instance, if the current market value of your home is $350,000 and you have a balance of $100,000 on your home loan, the computed balance of $250,000 is what constitutes your home’s equity.
An advantage of owning a home is that you get to build equity over time. While it might not be possible to sell your home’s equity, there are a host of home equity loan benefits at your disposal. For instance, you can use your home equity as collateral for a loan.
Below are the six different types of home equity loans at your disposal: (more…)