Getting a Home Equity Loan in 2024: What It Is and How It Works

A home equity loan lets you borrow money using your home as collateral. You'll get a lump-sum payment and repay the loan with fixed-rate interest over a predetermined term.

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A home equity loan is one way to tap into your home's value without having to sell it. As you make mortgage payments on the property and its value appreciates with time, the share of the home that you actually own — your equity — grows. By taking out a home equity loan, you convert that equity back into debt in exchange for cash. 

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