Loan: Money you borrow, usually from a bank or other financial institution. In exchange for giving you the money you need, you will need to pay them a percentage of that money as interest (on top of giving them back what you borrowed). Common types of loans are student, mortgage, auto and home equity.
Home Equity Loan
Home Equity Loan: Also known as a second mortgage, this type of loan allows homeowners to borrow against the value of their home. The amount of the loan is based on the difference between your equity in the home and the home’s current market value . . . so basically you’re borrowing the amount that you could hypothetically stand to pocket by selling it.
Home Equity Line of Credit
Home Equity Line of Credit: This is like a home equity loan, but instead of giving you a lump sum, the bank holds onto it, allowing you to draw on it as you need it up to the maximum amount. (See also: Home Equity Loan)
Equity: Another word for stock. If you have equity in a company, it means you own shares in that company. You can have equity in a public or private company. (See also: Stock, Bond)