Home-equity mortgages

{
  "id": "MLC-T-ECS-000890",
  "term": "Home-equity mortgages",
  "field": "Economic statistics",
  "definition": "The two types of home-equity mortgages referenced in the American Housing Survey are home-equity lump-sum loans, in which a loan of a set amount is received all at once, and home-equity line-of-credit, which is an arrangement in which one may withdraw funds at any time up to a set limit. They are mortgage loans, usually a second mortgage, that allow a property owner to borrow cash against the equity of a home, at any time up to a predetermined amount, without reapplying for a loan. Depending on the situation, lines-of-credit give an advantage to access the equity in different portions, by giving the option to withdraw the funds whenever needed, and make payments accordingly. With a home equity line-of-credit, the respondent is able to use the equity of the property and take advantage of the tax savings. Excludes reverse annuity mortgages and home equity conversions.",
  "references": [
    "U.S. Census Bureau Glossary"
  ],
  "url": "https://mlchart.com/terminology/economic-statistics/home-equity-mortgages/"
}