Home equity loans release the equity in your property so that you can use it. Equity is the part of your property that is available as cash if you were to sell it or release it. to give you an example: - if you have a property worth £100,000, and you have a £30,000 mortgage on it, you would have £70,000 equity available in the property to release. So they basically work by giving you a loan based on the available value of your property.
When you get a loan against the equity in your property, then you no longer have the equity, and your mortgage / loan payments will normally increase or extend over a longer period of time so that you can pay off the extra balance. Using equity in your own home, puts you at a higher risk of negative equity should you sell later and the property prices drop.
In more expert (accounting and finance) terms the equity could be described as the residual claim or interest in an investors assets, after all liabilities are paid. So the positive remainder of the assets after liabilities have been accounted for are the equity / owners interest in the business.
In the case of bankruptcy secure creditors will be paid first against proceeds from assets, then the remaining creditors in order of priority sequence have the next claim. The owners equity would be reduced to zero once all of the creditors had been paid.
Mortgage Packager Definition - Wiki Mortgage packagers put together a complete case for a mortgage loan before it is submitted to the lender, reducing the risk of rejection from the lender. The services of a mortgage packager are used by a mortgage broker and cannot be accessed directly by members of the public. A packager is also able to get exclusive mortgage deals directly with lenders that are not available to the individual and smaller brokers. Normally when a buyer applies for a mortgage, the buyer spends time completing mortgage application forms with a mortgage broker. The mortgage application forms are then sent directly to a lender on the buyer's behalf.