What Is the Difference Between a Home Equity Loan & a Home Mortgage?
Overview house image by Byron Moore from Fotolia.com house image by Byron Moore from Fotolia.com Mortgage and home-equity lines are useful financial products, but borrowers have to qualify. 788bca93-7438-9d7e-6b00-b5c07d8c0a0b300400 Modern financial institutions have developed two useful and popular methods of loaning money that are secured by the borrower’s residence. A mortgage is a loan that helps people to buy a home. A home-equity line of credit is a revolving credit account, in which the borrower taps the “equity” in the home: the market value less the mortgage balance. Borrowers should always be aware of the fees, “points,” charges and other costs associated with any type of loan. Credit Review For mortgages as well as home-equity lines, the lender will run a credit report as soon as the borrower files an application. The credit report will carry a FICO score that indicates the relative financial health of
