finance

Home Equity Loans

A home equity loan is a loan in which the borrowers use the equity in their homes as collateral. Equity is the difference between how much the home is worth and how much you owe on the mortgage (or mortgages, if you have more than one on the property). Collateral is property that you pledge as a guarantee that you will repay a debt.

Personal Finances

Personal finance is ananalysis of financial flows at various points in time. For example, we may receive our paycheck today, but have to pay tuition fees next year. Mortgage, interest, premiums, and numerous other financial flows are recurring events that repeat at regular intervals. Because these involve several time periods, we have to ask "What role does time play in these financial calculations?".

We know that if we deposit money in a bank we receive interest. Because of this, we prefer to receive money today rather than the future.

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