home equity loan, mortgage refinancingGenerating a home equity loan right now has been a challenge for many home buyers, especially those who bought at the top of the market, and whose homes have lost value. This has made mortgage refinancing difficult for them; in the past, people could take out a home equity loan that would help them with home improvements, paying big debts off, or sending a child to college. Now that lending practices have gotten fairly stringent, a home equity loan is a bit harder to generate because 1) there may not be any equity in the home, and 2) lenders are cautions about loaning money right now. The difference between mortgage refinancing and home equity loans is significant. People who want a home equity loan are adding to their monthly payments by borrowing against their home's equity. Mortgage refinancing is structuring a new loan, basically, with new terms, payments, and possibly even an interest rate drop. Some home owners can get home equity loans, however, if their home has substantial equity and if their credit is top notch. If you feel you need a home equity loan, talk to a lender, and see where you stand.