Home Equity Loan (HE)
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A home equity loan is a second mortgage that is secured by your home while the original, or first, mortgage is still being repaid. This loan is secured against your home. There’s also a Home Equity Line of Credit (HELOC), which operates like a revolving credit card; you can repay the borrowed amount and then borrow again. Unlike the HELOC, the home equity loan has fixed payments and continues until the entire debt is cleared.
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