Cool Is A Home Equity Loan A Secured Loan References. A home equity loan is a secured loan that allows a homeowner to borrow against the equity they’ve built up in their property through regular mortgage payments and growth in. A difference from, say, a personal loan is that a home equity loan is secured by your house, resulting in a lower interest rate, since there's less risk to the lender.
Since home equity loans are backed (secured) by your home, they typically come with lower interest rates than unsecured loans like credit cards and personal loans. The resulting home equity loan is secured by the borrower’s home, making it secondary to the mortgage. Because a home equity loan is secured by your house and is therefore less risky for the lender, it will typically come with a lower interest rate than you’d get on an unsecured.
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