Such late payments may be reported on your credit report. For qualifying purposes, the income of the borrower before taxes or expenses are deducted. Repayment is secured by the equity in your home. Often used for home improvements, major purchases or expenses, and debt consolidation. Home Equity Loan A fixed or adjustable rate loan obtained for a variety of purposes, secured by the equity in your home.
Interest paid is usually tax -deductible.
Often used for home improvement or freeing of equity for investment in other real estate or investment. Recommended by many to replace or substitute for consumer loans whose interest is not tax-deductible, such as auto or boat loans, credit card debt, medical debt, and education loans. A form utilized at loan closing to itemize the costs associated with purchasing the home. Used universally by mandate of HUD, the Department of Housing and Urban Development. Index A number, usually a percentage, upon which future interest rates for adjustable rate mortgages are based.