Home Equity is the value of your home in fair market. You can come to the value of your asset by subtracting the amount that you owe from your existing mortgage debt from the total fair market value of your home. This could increase and decrease as the market goes up or down and/or your mortgage balance decreases or increases.
Home equity loans are secured loans using your home as collateral. It allows the lender offer you loan in return for a lien on your home. In case you do not repay this amount to the lender you may face foreclosure. The home equity loans deplete the value of your home equity when your mortgage indebtedness increases.
Though mortgages and home equity loan as for shorter duration. Often it is observed that people rarely carry mortgages to more than 10 years as most of the homeowners sell or refinance their debt every 5 years or so.
Once you have decided you may go for adjustable or fixed rate mortgage. The former provides a chance to have lower rates when the interests are down in the market, the latter assures you of charging the same rate even if the interests in the market shoot up. Hence the latter provides you the security of a stable mortgage payment every month. You can budget yourself accordingly.
The 30 year fixed mortgage amortizes the principal amount for next 30 years. It is observed that the interest rates offered in such loans are little higher that the Treasury Bond rate at the time of the closing of the loan. So here is flipside. This could be a safe financing option but has a drawback of getting charged a higher interest rate as compared to the one offered on the adjustable rate mortgages.
 The 30 year home equity is usually opted while refinancing. Thus there is difference in terms of the rates of interest. You may be surprised to see that you are offered discounts which can allow you save around $173.00 every year on an amount of 100,000 that you have borrowed. And now if you multiply this amount with the term of loan, quite a big amount. Hey this is just the saved amount that you have saved with the reduction in the rate of interest.
Refinancing your mortgage will lower your interest rate, allow you pay off debts and will ensure you give yourself some peace of mind. Many agencies offer you different plans that suits to your financial positon and needs. You get options like paying interest only for all or part of the first ten years, or once in a while or with every payment. So you may choose what works for you the best.