As you may have guessed, the acronym
"HELOC" is not a wrestling move. Instead,
it's one of many terms you should know before tapping
your home equity to consolidate debts or finance a
home improvement. Refer back to this glossary whenever
you need to translate obscure home equity lending
jargon.
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| 14 common home equity terms |
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| 1. |
8. |
| 2. |
9. |
| 3. |
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| 4. |
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13. |
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14. |
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1.
Bid -- A written estimate of what your home improvement project will cost.
2.
Credit insurance -- A policy that pays off the card debt should the borrower lose his job, die or become disabled. The structure of protection for a revolving credit card debt is calculated each month to cover only the debt that existed at the last billing cycle.
3. Equity -- The difference between a home's current appraised value and what you owe on it. For example, your equity is $133,000 if your home is worth $300,000 and you owe $167,000.
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