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What is Home Equity? definition and meaning - InvestorWords

home equity


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...

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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...

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Related topics : line of credit home equity loan rates / line of credit home equity rates / line of credit home equity loan / line of credit home equity / home equity line

What is Mortgage Loan? definition and meaning

mortgage loan


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...

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Related topics : mortgage loan definition / loan mortgage financing / mortgage loan rate of interest / loan mortgage rate / loan mortgage interest

What is Subprime Loan? definition and meaning

subprime loan


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...

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Related topics : interest rates loan / loan bad credit no job / bad credit loan people / loans for people with bad credit / bad credit loan no

What is equity? definition and meaning -

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...

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Related topics : home equity interest rates / interest rate home equity loan / mortgage loan rate of interest / home equity loan mortgage difference / home loan equity definition

What is a loan? definition and meaning -



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...

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Related topics : loan pay student / student college loan / student loan repayment / federal student loan / student loan education

What is Shareholder Loan? definition and meaning

shareholder loan


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...

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Related topics : company loan to shareholder / commercial loan interest rate / company loan interest rate / interest rates loan / loan secured

What is Amortization Schedule? definition and meaning

amortization schedule


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...

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Related topics : amortization schedule loan / amortization loan definition / amortization loan