Review Of Downside To Home Equity Loans References. Let's say your home's market value is $500,000 and you owe $200,000 on your mortgage. “if you fail to pay your home equity loan, your financial institution could foreclose on your home,” says sterling.
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Although there are plenty of good reasons to take out a home equity loan, there are some negatives as well. If you continue making your payments at this pace, you'll pay $558,216 in interest by the time the loan is paid. For example, if you have $75,000 remaining on a.