Home equity loan
A closed-end second mortgage. One wire. Fixed payments. The first mortgage stays.
Mechanics
The lender appraises, approves a lump sum against available equity, and wires it at closing. You repay principal and interest on a fixed schedule, commonly 5 to 30 years. The first mortgage rate, payment, and term do not change.
A $120,000 second at a fixed rate is predictable. The payment is known. The house secures both liens. In a sale, both get paid before you do.
Educational only. Not a lender, and not financial, tax, or legal advice.