Breakdown Of Closing Costs pre qualify home loans How To Borrow From Home Equity Tapping Into Your Home Equity with a Reverse Mortgage – Some will choose to borrow against home equity by taking out a second mortgage, also known as a home equity loan (hel). Others will choose a similar method and.Equity Loan Rental Property 5 Best and Worst Ways to Leverage Your Home Equity. – Equity can be used as collateral for a home equity loan or a home equity line of credit. Home equity loans and HELOCs are second mortgages that are separate from your current loan. A home equity loan is a lump-sum loan with a fixed interest rate, whereas HELOC rates are generally variable.