Personal Finance
Home Equity
The net market value of a homeowner’s unencumbered interest in their real property, calculated as market value minus outstanding debt.
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Financial Industry Glossary & Underwriting Guide
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Terms Starting With "H"
Showing 3 definitionsPersonal FinanceHELOC
Home Equity Line of Credit (HELOC)
A revolving, variable-rate second mortgage line of credit secured by home equity that allows homeowners to draw and repay funds on demand during an initial draw period.
Personal FinanceHELOAN
Home Equity Loan (HELOAN / Second Mortgage)
A closed-end, fixed-rate second mortgage that disburses a single upfront lump sum secured by home equity and is repaid via equal monthly payments over 5 to 30 years.