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A home equity loan is generally an additional mortgage on your property. Home equity loans let you tap into your home’s value for cash.
To determine your home’s equity, subtract the amount you owe on all of your outstanding mortgages from the current value of your house. For example, if your property is valued at $150,000 and you owe $100,000, your home equity is $50,000.
Home equity loans can be issued as a lump-sum amount or as a revolving line of credit that you can borrow against as needed.
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