Home ownership means many different things to many different people. For some, home ownership is something they long to be able to afford in the future, and a symbol of true financial independence and adulthood. For others, home ownership is an onerous burden of maintenance and monthly payments. For people in the latter category, there’s another, more positive way to look at one’s home, and specifically the equity that has been built up. A home equity loan, also known as a home owner loan, can be a quick, affordable, and easy way to get much-needed extra cash.

In general, banks and other lending institutions like to make home owner loans, because they normally carry much less risk than do other types of loans, such as small business loans or personal loans. The home owner has already demonstrated his or her ability to repay a loan through the first mortgage. The home owner loan, as a second mortgage, is more or less an extension of this first one.

What is a home owner loan? It is a personal loan made to the individual who owns a home, and its value is determined by assessing the home’s equity. Equity, for those who might need a refresher, is the amount of money that has already been invested in the home by the owner to pay the first mortgage. The longer you have owned your home, the more equity you will have built up. The home’s equity is the collateral, or the thing that’s put up against the bank’s risk of issuing the owner the loan.

A home owner loan can offer significant benefits to individuals and families, but as with any financial transaction, it’s critical to do one’s research ahead of time. Do extensive comparative shopping to find the best rate available, both from traditional lenders and banks, as well as newer, online sources of financing. The more quotes you get, the better your chance of finding the loan that offers the most affordable rates and the best terms and conditions for your personal financial situation.

You may be surprised when you realize how much your home is worth. Equity builds gradually, and we often don’t notice its slow build-up. But if you own a home, you should think about putting that equity to work for you by getting a home owner loan that can give you the cash you need to cover your expenses.