In essence, a home equity loan is a breed of a second mortgage in which you are able to take the value of your home, use it as loan collateral and obtain a lump sum of cash. The equity you have in your home is the difference between the actual market value of the property and existing debts attached to it, including a first mortgage.
A home equity loan is great for covering significant expenses such as college tuition, home repairs or the consolidation of higher-interest debts. When a substantial amount of money is needed, the idea of using some of your accumulated equity is always worth considering. However, it is important to proceed cautiously and with sufficient information at hand.
Prodigy Lending is a DBA of AmCap Mortgage, Ltd. (NMLS ID# 129122 – www.nmlsconsumeraccess.org/EntityDetails.aspx/COMPANY/129122), an Equal Housing Lender.
Managing RMLO: Jason Turner (NMLS #286357)