Home Equity Wise

Closing Costs:
Closing costs are fees paid at the time of a loan purchase. These fees may include a loan origination fee, points, appraisal fees, title search and insurance, attorney fees, a deed recording fee, credit report charges, and other lending fees.

Collateral:
Collateral is property that is pledged against a loan or debt as a guarantee that the loan or debt will be repaid.

Credit Report:
A credit report is a financial report that contains detailed information about an individual’s credit history.

Credit Score:
The term credit score is used to describe the three-digit number between 500 and 850 that appears on credit reports. In essence, this number represents an estimate of an individual’s financial creditworthiness

Debt Consolidation:
Debt consolidation entails taking out one loan to pay off several other loans and/or accounts.

Equity:
Equity is the difference between how much a home is worth and how much is owed on the mortgage.

Home Equity Lender:
A home equity lender provides home equity loans or home equity lines of credit.

Home Equity Line of Credit:
A home equity line of credit allows a homeowner to borrow against home equity as needed. The line of credit is revolving; money can be borrowed over an extended period of time.

Home Equity Loan:
A home equity loan allows a homeowner to borrow against the equity in their home and provides a lump sum of cash to be spent however the homeowner sees fit.

Home Improvement Loan:
A home improvement loan is a loan given to a homeowner to finance home improvements.

Interest Rate:
An interest rate is a fee that is charged or paid for the use of money.

Lending Fee:
A lending fee is a fee charged to a borrower by a lender for the use of money.

Second Mortgage:
A second mortgage is a mortgage on real estate that has already been pledged as collateral against another mortgage