Plain-English definitions for the terms you'll encounter on your financial journey.
Home Equity Line of Credit is a flexible loan that uses your home as collateral, allowing you to borrow money as needed up to a certain limit and pay it back over time. It functions like a credit card for your house, where your home's value acts as your spending limit.
The difference between the current market value of your home and the amount you still owe on your mortgage.
A revolving line of credit that allows homeowners to borrow against the equity they have built in their property. It functions similarly to a credit card, where the borrower can spend up to a limit and pay it back over time.
A type of loan where the borrower uses the equity of their home as collateral to receive a lump sum of cash.
The process of replacing an existing mortgage with a new one, typically to obtain a lower interest rate or different terms. This can help homeowners reduce monthly payments or access home equity.
A loan for homeowners aged 62 or older that allows them to convert part of their home equity into cash.