QWhat Is Home Equity?
AHome Equity is the value of your home minus any amount that you still owe on it through your mortgage or other liability. Building home equity improves your access to credit and allows you to take out Home Equity Loans and receive Home Equity Lines of Credit. While this access may be useful and perhaps save you from a dire economic situation, homeowners should beware. Unscrupulous lenders may try to trick you into a loan or a credit line with high payments that your income cannot support or with huge balloon payments at the end of the loan term which force you to borrow again in order to pay them.