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Home equity loans are a type of second mortgage that let you use your home’s value as collateral to pull out cash. Home equity is the difference between how much a home is worth and any debts against.
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4 Different Rules of Thumb For How Much House You Can. – As a broad generalization, most people can afford to purchase a house worth about three times their total (gross) annual income, assuming a 20% down payment and a moderate amount of other long-term debts, such as car or student loan payments.
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