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CFPB: What Is a Home Equity Loan?

Publisher: Consumer Financial Protection BureauLast checked: 2026-08-18

The CFPB explains home-equity loans, how they use a home as collateral, and why borrowers should compare costs, repayment obligations, and foreclosure risk.

Why it is useful: It supplies consumer-focused context for any strategy that involves borrowing against appreciated real estate and keeps attention on repayment and collateral rather than tax treatment alone.

Keep in mind: A home-equity loan is not the same as every asset-backed credit product. Terms, qualification rules, rates, fees, and risks vary by lender and borrower.

Why it is useful

It supplies consumer-focused context for any strategy that involves borrowing against appreciated real estate and keeps attention on repayment and collateral rather than tax treatment alone. It also gives readers a named government, regulator, or institutional source to compare with promotional claims before making a financial, tax, borrowing, or property decision.

Limitations

A home-equity loan is not the same as every asset-backed credit product. Terms, qualification rules, rates, fees, and risks vary by lender and borrower.

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www.consumerfinance.gov

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