A home equity installment loan allows you to borrow money, using the equity in your home as a means of securing the loan. A mortgage (usually a second mortgage) is placed on your principal residence. The term of the loan can vary. The loan is paid back in equal monthly installments. In many instances you can gain a tax advantage for the interest paid on the loan, but this is not always the case. You should contact your tax advisor to determine your own tax consequences.