Home Equity Loan (Noun)
Meaning
A loan secured by equity value in the borrower's home.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The bank offered a home equity loan to the homeowner, allowing them to tap into the value of their property to fund a major renovation.
- After years of paying down their mortgage, the couple decided to take out a home equity loan to finance their daughter's college education.
- Home equity loans often have lower interest rates than credit cards or personal loans, making them a popular choice for homeowners who need to borrow money.
- The lender required the borrower to have a minimum amount of equity in their home before approving a home equity loan.
- By using a home equity loan, the homeowner was able to consolidate their high-interest debt into a single, lower-interest loan.