Home equity loans are borrowed against the value of your home that is greater than the balance of your mortgage. For example, if your home is currently worth $100,000, but you owe only $70,000 to the bank, you may be able to borrow against the $30,000 in equity.
It is typically easier to obtain this type of loan than an unsecured loan, because the house is your collateral. This type of loan is also provides a tax break as the interest is tax deductible like a standard mortgage.
Keep in mind that if you are unable to make the payments on a home equity loan, the consequences can be dire. Failure to pay the loan back can result in foreclosure and eviction from your home.
