Defining Home Equity Loans Home Equity loans are often considered 2nd mortgages because the home equity loan subordinates to your 1st mortgage using the remaining equity you have in your home for the new 2nd mortgage. Home equity loans are great financing tools for accessing cash or refinancing credit cards and student loans . Homeowners can select from fixed rate home loans or variable rate home equity lines of credit that feature revolving access to your finance your home equity.