Most people who are not well acquainted with different types of loans find the various terms used for loans confusing. Two of the terms that many people believe are different but are actually one and the same in practice are home equity loans and second mortgages. The two terms are interchangeable and refer to a type of loan that is secured by the equity on your home.
There are many reasons why you may choose to acquire a home equity loan rather than a mortgage. Some of the most common reasons include paying off existing debt, renovating your home or making some larger purchases. However, you should understand the difference between home equity loans and a mortgage before you make a final decision in this respect.