Equity home loans

Equity home loans are granted to homeowners in exchange for a lien on the equity they have in their property. This type of funding usually requires an amount equal to the loan amount requested. Some loans will be approved based on 125% of the equity in the home. Unlike a refinance mortgage, an equity home loan does not pay off the original mortgage. It acts more like a second mortgage in that it is also secured by the property, but has a distinctly different and separate mortgage agreement. Although this type of program may provide assistance, ideally a borrower will want to have no debt with their creditors.