You have probably heard a lot about home equity loans if you have spent any time at all looking at home financing options.  These are loans that are usually taken out by people who already own a home and want to borrow against the value of the home.  Not everyone can get a home equity loan-of course, you must actually have equity in the home, as well as the right credit situation.  Home equity loans are a great way to finance major renovations on your house. What Is Equity? It’s a term that is heard a lot, but for those new to the housing market, it might not be one you exactly understand.  It’s quite simple, really.  The equity in your home is the difference between what you currently owe on it and the current market value of the home.  You can achieve equity in your home in two main ways.  The first is by paying down your mortgage.  The second is by increasing the value of your home, either through renovations you have done or a general increase in the market. Loans Vs. Lines of Credit Along with home equity loans, you have probably heard about home equity lines […]
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