ARe home loans like car loans?

[sgomez1325]

What I mean by that is,  with a car loan, (at least at my local credit untion), if the car has equity in it, I can borrow that much more on the loan. What about a house? If there is equity in it, can I borrow more than the purchase price? (for home improvements and such). 

[Cowboys4Life]

---

@sgomez1325 wrote:

What I mean by that is,  with a car loan, (at least at my local credit untion), if the car has equity in it, I can borrow that much more on the loan. What about a house? If there is equity in it, can I borrow more than the purchase price? (for home improvements and such). 

---

Yes.  It is called a HELOC:  Home Equity Line Of Credit.  

[Anonymous]

You can also get a fixed loan, called an Home Equity Loan.  A HELOC works more similar to a Credit Card, but there will be time limits.  

Also, most Home Equity products do not necessarily let you borrow up to 100% of the value.  Many right now are capped at 80% of value.  For example, if your house appraises at $100,000, the total of your first mortgage the home equity product could be $80,000.  

[VALoanMaster]

---

@sgomez1325 wrote:

What I mean by that is,  with a car loan, (at least at my local credit untion), if the car has equity in it, I can borrow that much more on the loan. What about a house? If there is equity in it, can I borrow more than the purchase price? (for home improvements and such). 

---

No, it's not the same. If you are buying a home and you need money  for home improvements you'd need to do a renovation loan where the appraised value is based on the after repaired value of the home.

If you're talking about a home you already own, then yes, you can borrower based on the equity in your home.