A home equity loan lets you borrow money against the equity in your home. Your home equity is the value of your home, minus the amount of the outstanding mortgage. When you receive a home equity loan, it is in a lump sum, and you repay it over a fixed rate and period. Home equity loans typically have a fixed rate and terms like your primary home mortgage. This loan is different from a home equity line of credit, which uses the equity in your home on an as need basis with rates that are typically variable. Tax laws may be favorable or unfavorable in your situation depending upon the loan type, terms, and conditions.