Home Equity Loan
Quick Summary
A loan secured by home equity, often used for consolidation or liquidity.
ELI5 Explanation
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You borrow against the value already built in your home.
Detailed Explanation
Private home equity loans can close quickly but carry higher rates and fees than bank products. They are common in urgent cash-flow situations.
Example
A homeowner takes a second-position equity loan to clear tax arrears and avoid forced sale.
Why It Matters
It can solve short-term problems but must be managed carefully.