Home Equity Loans allow you to borrow money using your home as collateral. This is considered a type of second mortgage on your home. You may choose to take out a Home Equity Loan in order to consolidate high-interest debt, make improvements on your home, pay education for costs, get extra cash, or refinance your mortgage. When deciding on a loan, though, you must be wary of unscrupulous lenders. Don’t agree to a Home Equity Loan if your income is not sufficient to make the monthly payments – you could lose your home and all the equity you’ve built in it.