How do home equity loans work?

+1 vote
asked Nov 23, 2018 in Real Estate - Renting by CasJohnson (390 points)
How do home equity loans work?

1 Answer

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answered Nov 23, 2018 by Lustbloodme (420 points)
The way a home equity loan works is you borrow up to a certain amount for the life of the home mortgage and have a time limit set by the lender to pay back the home equity loan.

On a home equity loan you withdraw money from the amount as you need it and pay it back as you use it.

It's kind of like using a credit card when you take out a home equity loan.

Only take out a home equity loan if you absolutely need to and can actually pay it back otherwise you may lose your home.

You'll also need a pretty good credit score of 700 in order to qualify for the home equity loan however I got a home equity loan with a credit score of 621 but it was hard to do.

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