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In order to get a home equity loan, you need to have enough equity built in your home. The money you can borrow is calculated by a special formula. You should take about 80% of your house price minus the money you still owe. This means that you can get a home equity loan when you have already created some equity in the house.

By the way, get to know What Is Home Equity?

If you made a down payment of 20%, for instance, and  have been making payments for the next two years, you are able to apply for a home equity loan.

You should choose the best mortgage equity deal as propositions may differ. Some lenders may even offer you to calculate up to 125% of your home equity, but such borrowing can be risky.

Remember that a home equity loan doesn’t much depend on your credit history, so you can get it even with a bad credit score. That is why it’s a good variant for people to improve their financial situation.

However, it’s never late to start making your way to a perfect credit, know how and follow the tips.