Equity Mortgage

An equity mortgage is a type of loan that uses part of the asset's value as security. The security is usually a large percentage of the home, typically around 75% of the total value. The main advantage of an equity mortgage is that you get faster loan terms and lower closing costs. It is considered a good alternative to the traditional mortgage when you need to refinance or shorten your mortgage term. It also eliminates escrow payments which may add to the total cost of the loan. Equity mortgages come in 15- to 30-year terms like most home loans.