What Does Borrowing Against my Equity Mean?

Answer:
When you borrow against your equity, you’re using

a portion, or all, of your home’s value, depending on whether you still have a mortgage on your home. Equity loans can provide you with the ability to obtain funds at a great rate of interest.

There are various names for loans utilizing the equity in your home including HELOC, home equity line of credit, second mortgage, mortgage equity loan, and home equity loan. Because the debt is secured by your home, you may be able to utilize the interest on the loan as a tax deduction.

If you’re thinking of borrowing against your equity, make sure that you consider both the pros and cons – if you’re unable to repay – you could lose your property.