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A home equity loan is a type of second mortgage.Your first mortgage is the one you used to purchase the property, but you can use additional loans to borrow against the home if you’ve built up enough equity.Using your home to guarantee a loan comes with some risks, however.

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A home equity loan is a second mortgage that allows you to borrow against the value of your home. Your home equity is calculated by subtracting how much you still owe on your mortgage from the.

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