Home Mortgage Loan Definitions

Home Equity Loan - A loan secured by a primary residence or second home to the extent of the excess of fair market value over the debt incurred in the purchase.

Home Mortgage Refinance - A loan to refinance the purchase of real estate, usually with specified payment periods and interest rates. The borrower (mortgagor) gives the lender (mortgagee) a lien on the property as collateral for the loan.

Home Equity Line of Credit - A method of borrowing in which a homeowner may borrow against home equity as needed using a checkbook or credit card. It differs from a standard loan in that the borrowing may be done over a period of time, preventing excess borrowing and limiting interest costs.