Home Equity Loan

Home Equity Loans (also known as second mortgages) are installment loans, meaning you have a fixed number of payments with a fixed interest rate. You get a lump sum of money, just like a regular mortgage loan.

• A home equity loan is generally the best choice when you know exactly how much your purchase is likely to cost and you need several years to pay it off. A major home-improvement project, for example, might be a good candidate for a home-equity loan.

• If you fall behind on your payments, the lender may foreclose and take your house.