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A home equity loan is a type of loan in which the borrower uses the equity of his or her home as collateral. Home equity loans are often used to finance major expenses such as home repairs, medical bills, or college education. A home equity loan creates a lien against the borrower's house and reduces actual home equity.Most home equity loans require good to excellent credit history, reasonable loan-to-value and combined loan-to-value ratios.

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  • A home equity loan is a type of loan in which the borrower uses the equity of his or her home as collateral. Home equity loans are often used to finance major expenses such as home repairs, medical bills, or college education. A home equity loan creates a lien against the borrower's house and reduces actual home equity.Most home equity loans require good to excellent credit history, reasonable loan-to-value and combined loan-to-value ratios.
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