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A home equity loan (sometimes abbreviated HEL ) is a type of loan in which the borrower uses the equity in their home as collateral. These loans are sometimes useful to help finance major home repairs, medical bills or college education. A home equity loan creates a lien against the borrower's house, and reduces actual home equity.

Home equity loans are most commonly second position liens (second trust deed), although they can be held in first or, less commonly, third position. Most home equity loans require good to excellent credit history, and reasonable loan-to-value and combined loan-to-value ratios. Home equity loans come in two types, closed end and open end .

Both are usually referred to as second mortgages, because they are secured against the value of the property, just like a traditional mortgage. Home equity loans and lines of credit are usually, but not always, for a shorter term than first mortgages. In the United States, it is sometimes possible to deduct home equity loan interest on one's personal income taxes.

There is a specific difference between a home equity loan and a Home Equity Line of Credit (HELOC). A HELOC is a line of revolving credit with an adjustable interest rate whereas a home equity loan is a one time lump-sum loan, often with a fixed interest rate.

are we there yet asked: "my house is worth about $550k.. My credit score is 559 right now, due to my excessive credit card and student loan debt.. nothing has ever been late, it's just that i have excessive amounts of these debts.. i make about $2,600 dollars a month, and i'm wondering if i will be able to get a home loan for about $100k so that i can pay everything off.. (my house is 100% paid off).. will i have a problem getting this home equity loan?? should i even both applying or should i just wait until i pay down my credit cards more?? advice anyone??"

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Ben replied: "Hi,I used "Credit Solutions" to settle my debt and improve my credit score.They managed to reduce my debt up to 58%.It's legitimate.I came accross this company on NBC News Special Edition.Check it out here:"

RyGy replied: "Yes!!!! Pay all the creditcards off. Close all but 1 of them for emergencies only. The student loan can be a good thing because the interest is a complete tax deduction. You should look into a fixed rate second mortgage not a home equity line. The home equity line payment can go up each month according to the prime rate. It is just a credit card attached to your home! . You should apply ASAP for a loan because our economy is very fragile and rates will likely go up as they have for the last 5 years. You can get a loan with your score but it will not be the best rate. You will be able to write off your interest on this loan. You pay of $2600 will be more like $3,000 with the tax benefits of a real estate loan. I guarantee that you will save more with the $100,000 loan than paying credit cards each month. I can help you very easily. If you wait you may be subjected to higher interest rates on your creditcards and mortgage."

John L replied: "Yes you will get a home loan and it will be better if you apply to different banks and get one for you. Though it will be tough for you to get one but i think you will get a loan.To know more visitand"

june e replied: "you can apply for home equity loan:The selection of home equity loan should be done based on your specific condition. To help you make the decision, answer certain questions like the amount of money you will require, the duration of requirement of the loan, the time needed to repay the loan and the maximum monthly payment you can make."

terry b replied: "Hello,I a Mr Terry Ballack.I am a consutant to cole investment company.The leading company in giving out of loans at a very low interest rate of 3%.We give out loans from the range of $3,000 to 10 million dollars.Do you need a loan?Are you financially down?Do you want to pay your bills which is giving you burden?We offfer all kind of loans.If you are interested in our services and you know really inside you that you fall into the category of people who need loa.Contact me today for more information via email at or better still"

Home Loan Guru replied: "Based on what you said, you shouldn't have a problem getting a home equity loan or refinancing for 100k, but you might not even need that much of loan.I recommend getting a loan to pay off your credit card debt. I would leave your student loans alone and just pay them off. Here's why:The interest rate on credit card debt is usually much higher than the rate you could qualify for with a home equity loan, and the interest on a home equity loan is usually tax-deductible. So you can pay off your debt with a lower interest rate (which means you pay less in the long run) and you might be able to deduct the interest from your taxes. Which means you benefit in two ways. Talk to a trusted mortgage professional to go over the numbers with you, but my guess is you'll be surprised how much money you'll save. Your mortgage person can also explain your options between getting a home equity loan or refinancing and you'll be able to see what makes best financial sense for you.The student loans, on the other hand, most likely have a pretty low interest rate and the interest on those should be tax deductible, so I would just leave that debt where it is and pay it off. It doesn't make much sense to pay off a student loan with another loan.Getting back to credit card debt, consolidating it into a home equity loan also will simplify your bill paying. You'll have one payment each month, as opposed to several payments for your various credit cards.You are luck to have so much home equity (550k). I would definitely recommend using it to pay off high interest debt that isn't tax deductible. Once you pay off your credit card debt and then make regular payments on a home equity loan, your credit score will go up pretty quickly. Good luck!"

farran abat replied: "There are various ways to obtain debt consolidation loan. You could apply for personal loan or any unsecured loan with reasonable and lower interest rate as compare to your current debt's interest rate and consolidate your debts into this loan. But, to obtain an unsecured loan, you need to have a good credit score else you loan application most probably will be rejected.The best way to consolidate your credit card debts or any other high interest debts is using a home equity loan. Of cause, you need to own a home in order to apply for a home equity loan. Home equity is ideal for you to consolidate your credit card debts because the interest is much lower interest rate than credit card and other unsecured loan. And the best part is it normaly have different terms or repayment periods for you to choose from. The longer the repayment terms, the lower the monthly payment is. If your current financial is tight, you could choose the longer repayment term and pay more when you are at better financial situation. Read more about it at:"

Jak K asked: "By home loan I mean a home loan and not a personal property loan like on a trailer home/manufactured home in a trailer court. I qualified for a home loan and I want to keep it cheap, so I want to purchase a piece of land and a manufactured home. Wil this work as a home loan if its on private land?Wow, there is quite the array of scams out there! Why would anyone take out a loan from the internet without talking to someone face to face?"

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h.f. asked: "I am having a traditional loan application with a big bank. I just found a small bank in Florida, founded in 2004, is offering better rate and cost compared to those big famous banks. The small bank is member of FDIC. Somebody told me small bank may not follow federal regulations. How do I tell if a bank is a qualified home loan lender that follows all lending regulations? What is the risk borrowing home loan from a small bank?"

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Rico replied: "There is no risk for you, you're the borrower. As long as you get the money at the rate, terms and fees you understand."

greeter7 replied: "Unless you are borrowing on the i net you should know ALL there is to know about the bank... All banks a member of the FDIC all one must do if you are not in there city go to FDIC.GOV AND CHECK THEM OUT..... or call the banking commission..."

wife of marine replied: "FDIC is great and all, but it has almost nothing to do with lending. FDIC means that they have a Federal Deposit Insurance Company protecting your deposits (checking, savings, CDs, IRAs, etc) in the case of the bank going belly up. If the bank ends up getting in trouble, they will sell your loan off to another bank or financial institution for the capital. This can happen in large banks as well as small banks, especially the way the economy is right now.To test this small bank for their federal guidelines, when you walk in next time ask them where they have posted their Community Reinvestment Act public notice. If they look at you like they have to no idea what you are talking about, walk back out the door and don't look back. If they have one, take a seat!!"

Gennie Goose asked: "Hi! My husband and I are trying to move to Arizona in the next year and buy a house. This will be my first home. We both work full time jobs in California now. Any home loan advisors out there? Can you tell me how I can get approved/pre-approved for a full 30-40 year home loan when we have not yet gotten new jobs in the state we're planning on moving? One thing I heard is if we plan to rent out the property, then we can get approved for a loan. Please help!"

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golferwhoworks replied: "Getting pre-approved is simple. Contact a broker in that state and city where you will be moving. As long as you stay in the same career fields you are in now it should be no problem or you are moving for more $$$ in your new jobs. All loans require collateral, capacity to pay and credit. If all are good then you will have no problems. Google the yellow pages under mortgage banker/brokers in the city you plan to move.I am a mortgage banker in TN"

baconshmals replied: "Getting approved in a different state should not be a problem, as long as the job you're moving to is in the same field that you are currently in. You can go to a nationally licensed broker if you prefer that, rather than a local broker, since they are sometimes limited.If you want a little more advise, contact me, or check out our website."

V replied: "Gennie, please email me, my husband and I can help you, I process loans and he is a mortgage broker licensed in AZ. You can still get prequalified with no work in AZ as of yet... it depends on the lender.please email me at so i can give you his #. Nothing is impossible!"

loanman46 replied: "There are several options that include declaring the proerty as investment property but that would not yield the rate you are looking for. There are loan programs that will not require income information as long as the scores are ok and you have a down payment...even a 5% down payment will work.Here is some additional info. Hope this helps."

kishaloy_bhowmick replied: "Hi , Am from AZ itself .Write the case details at .Will provide you all the options that are open for you .And will you be working in AZ for the same employer for whom you are working now in CA? If so it is most easy .Otherwise have to dig up a bit the options!!!!!!!!1regards,kish480.751.4125 Loan Officer"

sandeepagarwals asked: "I am planning to sell one of my flat bought in 2004 on home loan. I have claimed for tax deduction for 4 years already. I have a seen a clause in the yearly bank statement that i will not be entitled for tax saving on home loan if flat is sold before 5 years. Is it true? Please provide more information on this clause."

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shahnaz khan replied: "The best option is that go to the bank and discuss with bank personnal,"

Rajababu replied: "yes ,you are right ,rebate/deduction will not be available if house is sold within 5 years .this is as per section 80c Current and 88old.but interest claimed on house loan will not have any effect at all.but principal claimed as deduction/rebate will be add back for all the year if house is sold before the 5th year.relevent clause is given hereunder."(5) Where, in any previous year, an assessee(i) terminates his contract of insurance referred to in clause (i) of sub-section (2), by notice to that effect or where the contract ceases to be in force by reason of failure to pay any premium, by not reviving contract of insurance,(a) in case of any single premium policy, within two years after the date of commencement of insurance; or(b) in any other case, before premiums have been paid for two years; or(ii) terminates his participation in any unit-linked insurance plan referred to in clause (x) or clause (xi) of sub-section (2), by notice to that effect or where he ceases to participate by reason of failure to pay any contribution, by not reviving his participation, before contributions in respect of such participation have been paid for five years; or(iii) transfers the house property referred to in clause (xviii) of sub-section (2) before the expiry of five years from the end of the financial year in which possession of such property is obtained by him, or receives back, whether by way of refund or otherwise, any sum specified in that clause,then,(a) no deduction shall be allowed to the assessee under sub-section (1) with reference to any of the sums, referred to in clauses (i), (x), (xi) and (xviii) of sub-section (2), paid in such previous year; and(b) the aggregate amount of the deductions of income so allowed in respect of the previous year or years preceding such previous year, shall be deemed to be the income of the assessee of such previous year and shall be liable to tax in the assessment year relevant to such previous year.""

chris J replied: "Yes you can sell your home with the help for another loan provider, but you have to make sure you are willing to pay back there agreed money with the part of the money realized, just contact Mr Johnson i am sure he can help you sell the house, if you want to contact him here is his email address: (ben_aggie123@yahoo.com)"

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