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    Lacyside's Avatar
    Lacyside Posts: 2, Reputation: 1
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    #1

    Aug 3, 2012, 09:12 AM
    Home equity loan
    Is it cosidered the same as a mortgage?
    AK lawyer's Avatar
    AK lawyer Posts: 12,592, Reputation: 977
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    #2

    Aug 3, 2012, 09:22 AM
    More or less. I think the principal difference is that the borrower didn't purchase the home with it; it's borrowed on an already-owned home. The detailed terms of the mortgage might be a bit different, but it's still a secured loan.

    See Home equity loan.
    LisaB4657's Avatar
    LisaB4657 Posts: 3,662, Reputation: 534
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    #3

    Aug 3, 2012, 04:47 PM
    A mortgage is any type of loan where the property is used as collateral for the loan. When a person takes out a mortgage as part of the purchase of property it is called a purchase money mortgage. When a person takes out a mortgage on property that they already own it is usually called a home equity loan.
    AK lawyer's Avatar
    AK lawyer Posts: 12,592, Reputation: 977
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    #4

    Aug 3, 2012, 05:29 PM
    Quote Originally Posted by LisaB4657 View Post
    A mortgage is any type of loan where the property is used as collateral for the loan. ...
    Well, a deed of trust is a real property collateral arrangement too. But they serve the same purpose.

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