A Home Equity Loan is a mortgage loan that uses the equity in the property as collateral. This type of loan is normally a second mortgage on the property, but can be a first mortgage.

Whereas a Home Equity Loan is normally a second mortgage with a fixed amount paid to the borrower in a lump-sum and normally contains a fixed interest rate, a Home Equity Line of Credit normally has a revolving credit with an adjustable rate.

Get more information on Home Equity Loan in the Real Estate Forum.