Owning a home is a big deal, and there are a lot of questions that we need to make sense of here. And, as we start to look at everything that may be involved in this process, it's likely that we need to work out a lot of details and info about what we can do with the investment that we've made. So, of course, you may be asking an important question - how does a home equity loan work? What can you do with it and how do you pay it back? Let's take a deeper dive into these loans and how they can be used. What Are They? Home equity loans are exactly what they sound like.