Save Big Comparing Top Home Equity Loan Secrets

How Home Equity Loans Work

A home equity loan is essentially a second mortgage that provides a lump sum of money based on the equity in your home. The loan is repaid over a fixed term with a set interest rate, making it predictable and easy to budget for. The amount you can borrow is typically determined by the lender's loan-to-value (LTV) ratio, which is the percentage of your home's appraised value that they are willing to lend. Most lenders allow a maximum LTV of 80%¹.