Resources > Glossary > Home Equity Loan

Glossary of Notary Public, Mortgage, Signing Agent, and Loan Signing Terms.

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Common Terms 1   Common Terms 2

Home Equity Loan

Function: noun

Definition 1:
A loan secured by a second deed of trust on a house, typically used as a home improvement loan. A home equity loan can sometimes be the first or third lien on a house in some circumstances. You need to have a good credit history and a good loan to value ratio to qualify for a home equity loan. There are closed end and open end home equity loans. A home equity loan is a one time lump sum loan, generally with a fixed interest rate while a HELOC usually has an adjustable rate.