UK Accounting Glossary
Home equity debt is a loan that is secured by the borrower’s home equity (the home’s fair market value less the amount of money still owed on the home). Broadly, there are two types of home equity debt: a home equity loan and a home equity line of credit. There are important differences between these two types of home equity debt. Home equity debt in the form of a home equity loan is a type of home equity debt that works like a first mortgage, with the loan paid out in a lump sum and repayment amortized over the length of the loan. Home equity debt in the form of a home equity line of credit (HELOC) is a type of home equity debt that works much like a credit card with a revolving balance and variable interest rate.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
Definitions for Home Equity Debt are sourced/syndicated and enhanced from:
This glossary post was last updated: 9th February 2020.