Are you confused about what a home equity loan and line of credit are? Read on and you will find the difference between the two and perhaps other useful data.
First thing you should know is what home equity is. Equity is the difference between how much the home is worth and how much you owe on the home. What you owe is the amount left to pay off the mortgage or mortgages as the case may be.
Here is some math on that. You purchased your home for $300,000. At the time of purchase you paid $50,000 as the down payment. This left a balance of $250,000 (your mortgage). The equity amount at this time is the down payment amount ($50,000).
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Are you confused about what a home equity loan and line of credit are? Read on and you will find the difference between the two and perhaps other useful data.<\/p>\n\n\t
<\/p>
First thing you should know is what home equity is. Equity is the difference between how much the home is worth and how much you owe on the home. What you owe is the amount left to pay off the mortgage or mortgages as the case may be.<\/p>\n\n\t
<\/p>
Here is some math on that. You purchased your home for $300,000. At the time of purchase you paid $50,000 as the down payment. This left a balance of $250,000 (your mortgage). The equity amount at this time is the down payment amount ($50,000). <\/p>\n\n