How does a home equity loan work? First, it’s important to understand that the term home equity loan is simply a catchall for the different ways the equity in your home can be used to access cash. The ...

Learn what financial instruments are, explore major types and asset classes, and understand how they work in investing, trading, and portfolio construction.

How Does an Equity Line of Credit Work? An equity line of credit is a type of revolving credit that allows homeowners to borrow against the equity in their home. Homeowners can use this credit to ...

HELOCs allow flexible withdrawals similar to credit cards during the initial draw period. HELOC interest rates are usually variable, potentially increasing repayment costs. Unlike HELOCs, home equity ...