Home equity loan allows you to draw on the equity of your house without paying for the closing rates. There are many people having bad credit, so the credit secured by the equity can get you loan with low rates. If you use your credit wisely, you can use the acquired credit to improve your credit rating. But to get a good deal on the fees and rates, you must choose the right lender.
Using your home equity is a good way to get large amount of money at low cost. Two most common types of loan products offered by lenders are home equity loan and home equity credit line. Home equity loans are one time loan of large sum of money.