Awasome Home Equity Pros And Cons References. Equity is the difference between the market value of your home (or property) and the amount you owe on your mortgage. Cons of home equity loans just like any form of debt, home equity loans have some drawbacks, too.

The heloc is traditionally set up with an interest only payment. A home equity loan takes into account your property value today. Taking out a home equity loan can be a good idea if you need money to fund life expenses such.