Is it true that if you default on a home equity loan you could lose your home even if you are paying your regular mortgage payments?
Unfortunately it is true. If you default on a home equity loan while still making your mortgage payments they can foreclose.
Answered
by Jennifer W.
-
About Home Equity Mortgage
A home equity loan is similar to a mortgage - the consumer would borrow money from the equity (value) of their house, then have to pay it back gradually.
More about Home Equity Mortgage »
About Home Equity Loan
In a home equity loan, the borrower uses the equity in their home as collateral. It's used as a form of insurance for the lender.
About Home Equity
Home equity is the financial value of a home, minus the amount that is owed for the mortgage. If the mortgage is entirely paid off, then the homeowner's home equity equals the entire market value of the home. If money is still owed on the mortgage, home equity is equal to the market value of the home minus the amount the homeowner still owes on their mortgage.
Related Questions about Home Equity Mortgage
-
What are 3 differences between a home equity loan and a mortgage?
Home equity loan is a type of loan in which the borrower uses...
-
What is the difference between mortgage and home equity?
A home equity is a second mortgage, but a second mortgage isn...
-
Can I maintain my home equity loan while refinancing to a interest only mortgage?
Refinancing is when you apply for a secured loan in order to ...
-
Accessing the equity in the home is a bad reason to refinance...
-
Hmm... we sent that Answer to you already! Txt GETNEW to get ...
Comments