Navigating Home Equity Loans and Understanding Key Terminology

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Navigating Home Equity Loans and Understanding Key Terminology

When leveraging home equity through lending products like cash-out refinancing or home equity loans, key terms arise around routing numbers, loan types, and regulations. For homeowners exploring options, understanding concepts like equity bank routing numbers, land equity loans, and equity skimming helps avoid confusion.

Defining the Equity Bank Routing Number

The equity bank routing number is a 9-digit code that identifies the bank holding your home equity loan or line of credit. This routing number facilitates processing payments and transfers electronically.

On your checks and account statements, you can locate the routing number for your equity lender. Including this routing number on payments ensures they reach the correct destination.

Comparing Land Equity Loans

A land equity loan utilizes the equity built up in a property’s land value specifically. The lender places a lien on just the land, not the entire property. Land equity loans allow borrowing against undeveloped or agricultural land.

This contrasts with a traditional home equity loan or HELOC that leverages overall property equity including structures. Land equity loans cater to owners of raw rural land or commercial lots needing capital.

Understanding Equity Skimming

Equity skimming refers to an illegal scheme to misuse equity ownership in real estate. It involves deception and misrepresentation to essentially steal equity from rightful property owners.

Actions like collecting rent but not paying the mortgage or selling a property without paying off existing liens constitute equity skimming fraud. Homeowners should protect their equity and beware of these predatory tactics.

Learning key terminology helps homeowners safely access equity wealth through above-board lending practices, routing numbers, and loan products. Consult reputable banks or advisors when exploring equity leverage.

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