Having a house of your own is a wise investment. It can save you from many unexpected financial troubles. for instance, if you need money urgently, you can take a home equity loan and fulfill your obligation. the amount of loan equals the equity of your house, which is nothing but the market value. However, if you are yet to finish repaying the initial mortgage, then the outstanding amount is deducted from the market value to arrive at the home equity. in any case, you cannot take a loan more than the equity amount.
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Home Equity Loan ? Use and Misuse
Source: http://www.finance4noobs.com/home-equity-loan-use-and-misuse/
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