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Home Equity Loan, Home Equity Loan

A home equity loan creates a lien against the borrower's house, and reduces actual home equity.

Most home equity loans require good to excellent credit history, and reasonable loan-to-value and combined loan-to-value ratios. Home equity loans come in two types, closed end and open end.

Home equity loans and lines of credit are usually, but not always, for a shorter term than first mortgages.

Source: Wikipedia > Home Equity Loan





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