A home equity loan is a fully amortized, simple interest, fixed rate loan, which is placed in second position on your property title behind the existing first mortgage. The full amount of the home equity loan is paid in one lump sum at the time of the loan closing. Checks can be either mailed directly to you, or to your creditors if you are paying off large debts.

The three most common uses for a home equity loan are debt consolidation, home improvement, or cash out. Consolidating debts with a home equity loan can eliminate high interest credit card balances. Many people pay only the minimum balance on credit cards, which means that the daily compound interest is charged on both the remaining balance and the accumulating interest. 

Using a home equity loan for improving your home can provide the upgrades that you want, while increasing the value of your home, and creating a new tax deduction.

You have the option taking cash out for any other purpose including, major purchase items, business investment, college tuition, medical expenses, or even a vacation.

Home equity loans are available whether you have equity or not, even up to 125% of value.