How Does a Home Equity Loan Work?
If you own a home, it’s likely the biggest asset to your name. That value can be put to work for you in the form of collateral for a loan, which you can use for whatever purpose you want, from home improvements to paying for emergencies.
That’s the gist of what a home equity loan is: money you borrow against what your home is worth.
Home equity is simply the difference between the value of your home — the amount it could sell for today — and what you owe on the mortgage. If you have a $100,000 mortgage on a property valued at $300,000, then
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