 TITLE: Home Equity Loan vs. HELOC: What’s the Difference? CONTENT: What Is a Home Equity Loan?\n---------------------------\nA home equity loan is a lump sum of money you borrow against the equity in your home. Home equity loans are often called second mortgages. Like your primary mortgage, a home equity loan is secured by your home—meaning the lender can seize the property if you fail to repay the loan as agreed.\nThe current annual percentage rate (APR) on home equity loans start at about 3% and range to 12% or higher. As with interest rates on most loans, the rate you qualify for will depend on factors including your credit score (with higher scores getting the lowest interest rates), income, and how much you spend on other debts each month. END