The speaker explains what a home equity loan, how a homeowner can determine how much equity they have, and discusses his belief that these loans fueled economic consumption during the early 2000's and are now leading to the furious increase in foreclosures and bankrupcies.
Suze Orman discusses the differences between a home equity line of credit (HELOC) and a home equity loan (HELOAN). She mentions that these two types of loans are used to withdraw equity out of your home in the case that your home has appreciate in value or you have paid down the mortgage and have equity sitting
A Home Equity Line of Credit, or HELOC, is a line of credit extended to a borrower using their house as collateral, meaning that the bank may foreclose your home if you do not make payments on this loan. It can be viewed as a second mortgage and the lender will appraise your home and provide