It's a rainy evening and that "drip.. drip.. drip.." is a constant reminder that it's time for a new roof. Trouble is, you don't have any cash tucked away for a rainy day. Well, today is that rainy day and a home equity mortgage can be just the thing to get the money you need, when you need it.

For homeowners in need of a little extra cash, home equity mortgages are a real bonus. To fully grasp the concept of a home equity mortgage, you need to know about equity and understand how a mortgage works.

A mortgage, like any type of loan, involves borrowing money from a lender. As the borrower you are required to repay the borrowed amount, plus interest, to the lender. Mortgages require a series of weekly, bi-weekly or monthly payments. The mortgage will be amortized over a fixed period of time, usually twenty-five or thirty years. In essence, if you continue to pay your set mortgage payments over the period of amortization, your mortgage will be paid in full and you will be debt-free.

As you continually make your mortgage payments, the equity in your home begins to increase. Every payment causes the equity in your home to grow a little more. Over time, you "own" more of your property and owe less to the bank. The property becomes a major asset, and the more home equity you have, the greater financial power you possess.

Home equity mortgages are amounts of money borrowed against the value of your own property. In essence, you are borrowing money against the value of the property that you already own. Homeowners have different reasons for taking out home equity mortgages, but it always boils down to cash generation.

Many homeowners turn to home equity mortgages for debt consolidation, because the interest rates on mortgages are much lower than those on other types of credit. You will likely be paying about five percent interest on your mortgage, but a staggering eighteen percent, or even more, on your credit card.

For this reason, it only makes sense to pay off all of your other debts and incorporate or 'consolidate' them into one easy payment at a lower rate. The reduction of stress alone is worth the effort, as you can breeze through the month without facing a stack of overdue credit bills. Be careful though; home equity mortgages only work if you have sufficient home equity to provide enough cash after covering the costs associated with the additional mortgage.

Other reason for taking out a home equity mortgage can include children's education funds, home improvements or virtually any other need you might have for cash. Some homeowners also turn to home equity mortgages as a means to take advantage of lower interest rates. If prevailing market rates are lower, it's wise to refinance the loan and lock in at a lower rate. This can also generate extra cash.

Investment opportunities may also be found in home equity mortgages. By borrowing against your home, you can re-invest the funds into a plan that offers a higher rate of return.

Whether you need cash today, would like to consolidate your debts, or want to have a little extra tucked away for the future, home equity mortgages can offer the help you're looking for.