what do they mean when they refer to home equity what exactly is this what does it mean?

Answer 1

It's the current market value (not the amount you paid for your house) minus the amount you still owe on your mortgage and home equity line of credit.

Answer 2

The home equity loans fall into two categories.

The first type is a term or closed end loan and another is a typically a line of credit. Many people choose to describe them as a second mortgage as they are secured against your home just like your primary home loan. Usually these loans have repayment duration of 5-15 years.

The term loan is a one-time lump sum payment that should be repaid over a pre-determined duration. It carries a fixed interest rate that lets you pay the same loan installment every month. Once you get the loan, you cannot take further loan.

A home equity loan line of credit operates similar to a credit card. You can borrow up to a specific limit during the duration of the loan. The time limit is generally decided by the institution lending the amount. Within that time frame you can borrow money as per your necessity to pay for things that you require. As you go about repaying the principal, your credit revolves, allowing you to borrow again if necessary. Credit line is more flexible than a term home equity loan.

Answer 3

Home equity means the value of your home minus outstanding mortgages or liens against it.
Usually a bank will only lend you money up to 75 percent of the commercial value of the home.
If your house is worth $100,000 but your mortgage is $50,000, you have $50,000 equity and could probably borrow against $25,000 of that equity... depending on many other factors like income, payment patterns, etc.

Answer 4

Equity is the value of a property/home after all fees, deductions, etc. have been taken out.

Kind of like a net profit.

Answer 5

The money you have made, by paying on your home.

Answer 6

What the other people said.

Answer 7

how much your house is worth minus how much you owe