Re-mortgage equity loans are secondary loans taken out on the same house. Few loans are superior to other types of loans when the borrower is not required to pay penalties on the loan. Thus, if you have a current loan, it is important to know where you stand. You may want to look over your terms and conditions before you consider re-mortgage equity loans. Thus, if you have a penalty clause in the agreement, you should read it carefully to make sure that you will not need to payoff your first mortgage in full before taking on an equity loan. Thus, the re-mortgage equity loans are intended to help borrowers find a better solution for financing a home. Furthermore, the re-mortgage equity loans can help homebuyers payoff pending debts, as well as move existing credit charges against the borrower. Of course, if you have credit report issues, such as defaults, the re-mortgage plan will not remove any debts, since even if you pay off a debt, the credit bureaus store the information up to three years. Additionally, the re-mortgage equity loans are fixed rate loans that flex in rates of interest. For the most part, the buyer is paying off capital, but during the course of the loan, the interest rates increase and decrease. Regardless of the type of equity loan you choose, it makes sense to read all details included in the package. Again, if you have a pending loan, re-read the terms to find out if penalties are imposed on early payoffs or if the borrower takes out another loan during the term of agreement. Staying alert is the best policy when negotiating large sums of cash. Most borrowers take out a loan and fail to read the details, which ultimately results in people finding themselves in financial flux.