Home equity loan

Can someone please explain what this is? In laments terms if possible (haha). How long do you have to pay it back?

Re: Home equity loan

It depends on the loan that you take. I have a home equity loan that is 20 years but there are ones that are 5, 10, 15 etc. I believe they go in 5 year increments.

In todays banking climate though I am not sure if banks are offering them unless you have a lot of equity in your home. I got mine back in 2007 so I do not know the ins and outs now. I got a better rate for having the money taken directly out of my checking and there tends to be very minimal closing costs--I believe I paid less than $100 when we took out ours.

Interest rates tend to be a little higher on fixed equity loans and the closer you get to 80% loan to value ration the higher the rate.

There are also adjustable rate home equity loans.

what else did you want to know?