Home equity are bridge loans provided against the equity of the borrower’s home. In simpler terms, this form of bridge loan is issued against the value of the land property that a person has. In order to determine the equity value of the house, the difference between the market value of the home and the remaining mortgage amount should be calculated for an estimated maximum home equity value.
Home equity are mostly acquired for debt consolidation loans or new house renovations. These loans are given long-term ranging between 15 and 20 years, and the interest rate is also very reasonable. The best advantage is the ability for tax deductions.
On the other hand, line-of-credit equity allows a borrower to take a lump sum amount of money, repay it back partially and then take additional money again if needed.