Home Equity Credit (Noun)
Meaning
A loan secured by equity value in the borrower's home.
Classification
Nouns denoting possession and transfer of possession.
Examples
- A home equity credit is often used by homeowners to finance large expenses such as home repairs or college tuition.
- To qualify for a home equity credit, a borrower typically needs to have a significant amount of equity in their home.
- Home equity credit interest rates are generally lower than those of other types of consumer loans.
- Some lenders offer home equity credits with variable interest rates that can increase over time.
- Before taking out a home equity credit, borrowers should carefully review the terms and conditions to understand the repayment obligations.