Home Equity Cash Out Loan Is A Home Equity Loan Considered A Second Mortgage Home Equity Loan Problems – . out a $50,000 home equity loan with $5,000 in fees, he could end up with a $55,000 second mortgage if he chooses to finance the fees, too. If a home’s value is less than the balance of the.What Is The Difference Between Refinance And Home Equity Loan A loan to purchase a home is usually the first mortgage lien recorded on a property; subsequent loans depend on the amount of owners’ equity in the home and generally require a new appraisal. Homeowners may use the money from these second mortgages – available as a lump sum home equity loan or as a home equity line of credit – for any.