A Home Equity loan is considered a second mortgage. However, if your house is completely paid for and you currently have no mortgage, Oregonians will allow you to open a home equity loan in first lien position, meaning the home equity loan will be your first mortgage. 

This allows you to borrow against your home without the expense of a first mortgage loan while keeping your payments to a 10 year term. You receive your funds as a lump sum when you close your home equity loan and begin making payments within 45 days of the closing.