Home Equity: How to Use It What’s the difference between a second mortgage and a home-equity loan? What is a home-equity  loan, and is it different from a home equity line of credit? And is a mortgage refinance similar to the above, or a different animal altogether? Let's take a look at all the various ways you can use your home equity – without fear of losing your home or getting taken for a ride. First of all, a second mortgage and home equity loan are basically the same thing. These te…