A home equity loan is a loan guaranteed by real estate property; in fact, a property owner can borrow money from the bank for something other than a real estate purchase, as long as they can link their loan to an existing property. The home equity loan can be set up when purchasing a new or existing property, whether it is a primary residence, secondary residence, or a rental real estate investment. In most cases, the loan amount represents 50 to 70% of the appraised value.
