Equity Loans

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.