Meaning & use
home equity loan
A loan in which a homeowner borrows money using the value of their home, minus any mortgage owed, as collateral.
See it in a sentence
They took out a home equity loan to pay for the kitchen renovation.
Falling home prices can make a home equity loan harder to qualify for.
A note on using this word
Unlike a home equity line of credit, a home equity loan is usually paid out as one lump sum with a fixed interest rate.
Words with a similar meaning
equity loansecond mortgage
Choose a synonym to suit the sentence. Meanings can overlap without being identical.
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