Webster's Online Dictionary
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Common Expressions: EQUITY LOAN

ExpressionsDefinition
Equity loanAn equity loan is a mortgage placed on real estate in exchange for cash to the borrower. For example, if a person owns a home worth $100,000, but does not currently have a lien on it, they may take an equity loan at 80% loan to value (LVR) or $80,000 in cash in exchange for a lien on title placed by the lender of the equity loan. (references)
Home equity loanA loan secured by equity value in the borrower's home. Source: Wordnet 3.0 Copyright © 2006 by Princeton University. All rights reserved.
Home equity loanA home equity loan is a type of loan in which the borrower uses the equity in his home as collateral. These loans are sometimes useful for families to help finance major home repairs, medical bills or college educations. (references)

Source: compiled by the editor from various references; see credits.

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Specialty Expressions: EQUITY LOAN

ExpressionsDomainDefinition
Equity loanFinanceA loan that uses the borrower's equity in real property as collateral. The loan may be for a variety of purposes. Also known as a second or junior mortgage loan. (references)
Home equity loanFinanceA revolving, open-end loan extended under a line of credit and secured by the borrower's residential property. (references)
Home equity loanMilitaryA loan providing a homeowner with the ability to borrow any amount up to the loan limit, with repayment secured by the equity in the home. (references)
Shared equity loanFinanceA loan in which the lender shares in the equity of the mortgaged property in return for a lower interest rate to the borrower. (references)

Source: compiled by the editor from various references; see credits.

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Extended Definition: Equity loan

Equity loan

An equity loan is a mortgage placed on real estate in exchange for cash to the borrower. For example, if a person owns a home worth $100,000, but does not currently have a lien on it, they may take an equity loan at 80% loan to value (LTV) or $80,000 in cash in exchange for a lien on title placed by the lender of the equity loan.

Many lending institutions require the borrower to repay only an interest component of the loan each month (calculated daily, and compounded to the loan once each month). The borrower can apply any surplus funds to the outstanding loan principal at any time, reducing the amount of interest calculated from that day onwards. Some loan products also allow the possibility to redraw cash up to the original LTV, potentially perpetuating the life of the loan beyond the original loan term.

The rate of interest applied to equity loans is much lower than that applied to unsecured loans, such as credit card debt.


Source: adapted by the editor from Wikipedia, the free encyclopedia; from the article "Equity loan". Image Credit.



Topics by Level of Interest: EQUITY LOAN

Topics sorted by level of InterestLevel (1=low, 600=high)   Topics sorted AlphabeticallyLevel (1=low, 600=high)
Home equity loan7   Home equity loan7

Source: the editor, created by/for EVE to gauge likely levels of human interest in linguistically triggered topics (compiled across various sources, such as Wikipedia and specialty expression glosses).

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