: a loan based on the amount of equity a person has in his or her home
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For example, paying off high-interest debt with a home equity agreement is probably a bad idea; doing so with a home equity loan with a much lower rate than the credit card debt itself may actually be a good move.—Kelsey Neubauer, CNBC, 29 May 2026 That has left the average homeowner with plenty of equity to pay off their high-rate revolving debt via a lower-cost home equity loan or home equity line of credit (HELOC).—Angelica Leicht, CBS News, 28 May 2026 Jen Stanbrough, a real estate agent in the Des Moines area, sometimes suggests that clients consider using a home equity loan on the departing residence to finance the new one.—Andrea Riquier, USA Today, 28 May 2026 Another financing alternative would be a home equity line of credit or home equity loan, using your current home as collateral.—Liz Weston, San Diego Union-Tribune, 8 Feb. 2026 See All Example Sentences for home equity loan