how does a home equity loan works
A home equity loan is basically a second mortgage on the home you are already purchasing. If you already own the home free and clear it will be your only mortgage but will still be considered a home equity loan. Equity means the portion of the home that you own that is not mortgaged.ome banks may allow you to redo the entire equity loan and add to it, providing you have paid down enough, and the loan doesn't exceed the equity you own in the home. The second type of home equity loan is a revolving line of credit. This one works just like a credit card.