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Once you have built up equity in your property, you have the privilege of applying for a residence equity line of credit, which permits you to borrow the funds you want.

Most financial insititutions ( banks, savings and loans ) have entered the home equity market, so you have a lot of options when you shop for the best loan.

In effect, a house equity loan is a second mortgage on your home. You typically get a line of credit up to 70 percent or 80 percent of the appraised value of your residence, minus whatever you still owe on your initial mortgage.

For example, if your house is worth $100,000 and you owe $20,000 on your mortgage, you may well receive a residence equity line of credit for $60,000 since your lender would subtract your $20,000 owed on the initial mortgage from your $80,000 worth of equity.

mortgage advice article