A home equity loan is a consumer loan secured by a mortgage. Home equity loans allow homeowners to borrow funds against the equity in their homes. Home equity loan maximum amounts are typically based on the difference between the home’s current market value and the amount still owed on the home’s first mortgage. Many home equity loans have very flexible terms of implementation and can be assessed using a debit card attached to the loan account. As home equity loans are secured against real estate, they typically offer attractive interest rates although today they are usually offered with an adjustable rate. Care should be taken when obtaining such a loan, however, because if the debtor defaults the home may be foreclosed to satisfy the debt.