Wednesday, 19 August 2009
A home equity loan is a type of loan that you can get using your home's equity as collateral. Lenders prefer home equity loans to unsecured lines of credit, as they allow the lender a way to get their money back should the borrower default on the loan. A home equity loan can be very useful if you're thinking of remodeling your home or consolidating high interest credit cards. You can get a home equity loan even if you have bad credit. There are pitfalls to getting a home equity loan. However, if you're careful, you can avoid them.