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What is Home Equity? definition and meaning - InvestorWords
The current market value of a home minus the outstanding mortgage balance . Home equity is essentially the amount of ownership that has been built up by the holder of the mortgage through payments and appreciation . Typically, residential property is bought through a mortgage, which is then paid off over a number of years, often 15 or 30. After the mortgage has been fully...
Related topics : interest home equity loan tax deductible / interest rate home equity loan / interest home equity loan deductible / line of credit home equity loan rates / line of credit home equity loan
What is Home Equity Line Of Credit? definition and meaning
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 .
Use this term in a...
What is Mortgage Loan? definition and meaning
A loan to finance 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. The mortgagor's lien on the property expires when...
What is Subprime Loan? definition and meaning
A loan offered to an individual who does not qualify for a loan at the prime rate due to their credit history . If a lender thinks that there is an above-average risk involved in giving a loan to a certain individual, they will sometimes offer them a subprime loan, which has an interest rate higher than the...
What is equity? definition and meaning - InvestorWords.com
1. Ownership interest in a corporation in the form of common stock or preferred stock .
2. Total assets minus total liabilities ; here also called shareholder's equity or net worth or book value.
3. Real Estate : The difference between what a property is worth and what the owner owes against that property (i.e. the difference between the house value and the remaining mortgage or loan payments on a house).
4. In the context of a futures trading account , it is the value of the securities in the account, assuming that the account...
What is a loan? definition and meaning - InvestorWords.com
An arrangement in which a lender gives money or property to a borrower , and the borrower agrees to return the property or repay the money, usually along with interest , at some future point(s) in time. Usually, there is a predetermined time for repaying a loan, and generally the lender has to bear the risk...
What is Shareholder Loan? definition and meaning
A loan made to a company from an individual shareholder or partnership that exchanges money for interest payments . The loan can be secured by the shares (an equity loan) or through a debenture . This type of loan ranks below commercial loans if it is not secured by collateral , making it subordinated debt . A...
What is Amortization Schedule? definition and meaning
The schedule of payments for paying off a loan . An amortization schedule breaks down the payments into interest and principal , which is helpful because with an amortized loan these the amounts vary with each payment. Typically, an amortization schedule will also include additional information such as the amount of interest and principal paid , as...