A home mortgage is a interest rate in which the borrower uses the value in their house as collateral. Hel-home value loans are often used to finance major expenses such as house repairs, medical bills or college education. A home mortgage creates a lien against the borrower's house, and reduces actual house value.
Home value loans come in two types: house value term, which is a fixed term, and house value history of credit score which is variable
Most house value loans require good to excellent history of credit score, and reasonable loan-to-value and combined loan-to-value ratios. Hel-home value loans come in two types: closed endHET and open endHELOC. Both are usually referred to as second mortgages, because they are secured against the value of the property, just like a traditional mortgage. Hel-home value loans and lines of credit score are usually, but not always, for a shorter term than first mortgages. Home value mortgage can be used as a person's main mortgage in place of a tradition mortgage, however you can not purchase a house using a home mortgage, you can only use a home mortgage to refinance. In the United States, in most cases it is possible to deduct home mortgage interest on one's personal income taxes. In other countries such as Australia, these loans are only tax deductible if the proceeds are used for investment purposes.
There is a specific difference between a home mortgage and a house value history of credit score (HELOC). A HELOC is a line of revolving credit score with an adjustable interest rate whereas a home mortgage is a one time lump-sum mortgage, often with a set rate. This is a revolving credit score mortgage, also referred to as a house value history of credit score, where the borrower can choose when and how often to borrow against the value in the property, with the lender setting an initial limit to the history of credit score based on criteria similar to those used for closed-end loans. Like the closed-end mortgage, it may be possible to borrow up to an amount equal to the value of the property, minus any liens. These lines of credit score are available up to 30 years, usually at a variable interest rate. The minimum monthly payment can be as low as only the interest that is because of. Source http://en.wikipedia.org