The equity loan is a contract whereby a person or entity (the creditor, usually a bank or savings, but may be any natural or legal person), pay a sum of money to another person or company (the debtor).

The mortgage itself is a guarantee that the debtor, or another by him, provides lending the money. Is that a property (or several) is offered and subject as a guarantee that it will return the borrowed money, so if it is not returned within the time agreed, the creditor, with abbreviated collection procedures, it may encourage sale at public auction the mortgaged property to collect what is owed, leaving the surplus to other creditors or, failing that, to the debtor.

As the creditor has the guarantee of property is what can provide low-interest mortgages and long term.

The property is not owned by the Bank that the mortgage has been granted, at all times is owned by whoever bought it can sell or rent it or even re-mortgaging, within legal limits.

Banks often ask someone to endorse the operation, especially if the person requesting the loan has a low income.