A home equity loan is secured by the equity in a home. Home equity loans can be used for just about anything including home improvements, debt consolidation and other major purchases or expenses. The interest paid on a home equity loan may be tax deductible. See home equity line of credit. In a standard home equity loan, a specified amount of money is loaned in a lump sum for a specified period of time. A standard home equity loan is also called a second mortgage installment loan. Home equity loans allows you to tap into your home's built-up equity, which is the difference between the amount your home could be sold for, and any claims held against it