Definition: A loan that allows homeowners to borrow against the equity in their
homes
If you're looking for startup or expansion capital for your
business and you own a home, consider getting a home equity loan on
the part of the mortgage that you've already paid off. The bank
will either provide a lump-sum loan payment or extend a line of
credit based on the equity in your home. Home-equity loans carry
relatively low interest rates, and all interest paid on a loan of
up to $100,000 is tax-deductible. But be sure you can repay the
loan--you can lose your home if you don't repay.