The amount difference of the appraised value of your house and the amounts payable to your loan provider is what you call equity. If you want to access money from your loan provider using your home equity as the collateral, you would call this type of mortgage as home equity loan.This loan or second mortgage is type of loan that gives you fixed amount to be paid within a specific time period. Compared to other mortgages, the approval of this loan is easier but the loan provider will still consider your payment records and the total market value of your property before it grants the amount you applied for.This loan usually grants increased percentage of the appraised value to know the maximum allowable amount of the mortgage. Closing costs are most often lesser than a mortgage so a lot of lenders offer home equity with practically no closing costs.As a mortgage applicant, you should be wary for such tempting offers because lenders normally obtain their profits by posting an increased initial interest rate. To be sure, check out the Annual Percentage Rate of a loan provider or bank before you file for your loan.The interest rates of this loan type are usually fixed. However, the lender can also provide variable rates programs. The terms of home equity mortgage vary but it usually ranges within 5 to 25 years and the processing is more like the first mortgage.The bases of the lender in granting your second loan are your assets and liabilities, your creditworthiness and the appraisal of your home. When you want to access money from your loan provider using your home equity as the collateral, you would call this type of mortgage as home equity loan.For you to be able to be allowed to get a such a loan, you should offer any of your properties as collateral of the amount being borrowed. This way, you will get you share of risks together with the loan provider and the latter will give you lower interest rates in return.The rationale behind getting a collateral from you is to ensure that the loan provider or bank will get the amount of money lent to you should you fail to place your payment for your loan. But remember, to pay your loan regularly.