A Home Equity Loan, also known as a second mortgage, allows you to borrow a one-time disbursement of funds, using the equity in your current home or property as collateral. Your interest rate is usually fixed and the loan is amortized over a fixed term. Like a traditional mortgage, you borrow a set amount, you receive the set amount of funds in one disbursement and then you pay that loan back with interest over a set amount of time.

You may borrow up to 80% of the equity in your home. Because you have the option to rescind or cancel your loan for up to 3-days following the closing, your money will not be distributed until the end of this 3-day rescission period.

The only person who would be able to get a home equity loan is the person whose name is on the title. Home equity loans aren’t as easy to get these days unless you have significant equity in the house (equity is the difference between the value of the house and the existing loan balance).

You also mention a 2nd mortgage. If there is a 2nd mortgage already on the house no one will be able to get a home equity loan on it.