A home equity loan, a form of second mortgage, utilizes the equity in your home as collateral. This loan type provides borrowers with a fixed sum of money at a set interest rate, making it ideal for those with clear financial needs. Upon approval, you’ll receive the loan amount as a lump sum, which you’ll repay through regular monthly installments over a predetermined period, often spanning up to 30 years.
The amount you can borrow hinges on your home’s current market value, as it serves as security against the loan. Your interest rate, akin to other loan products, depends on various factors such as your lender, credit score, income, and more.
CashLoanPH Changed status to publish 01/05/2024