Equity Loan
/ˈɛkwɪti loʊn/
Definitions
- (n.) A type of loan in which the borrower uses the equity of their property as collateral, typically allowing them to borrow against the value of their home minus any outstanding mortgage.
He took out an equity loan to fund the home renovations.
Forms
- equity loan
- equity loans
Related terms
See also
Commentary
Equity loans are commonly used in real estate finance; clarity about collateral and repayment terms is essential in drafting loan agreements.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.