Equity mortgage refers to the home loans that are given to established home owners to help them improve their borrowing capacity. They are especially favorable for people who are considering selling their property sometime in future. The loan helps the home owner to transfer some of the expenses incurred on the traditional home to a later date when the property is eventually sold off.

Equity mortgage loans allows one to borrow up to 25% of the value of the property. This value does not attract interest and neither does it attract an annual percentage rate (APR) unless a borrower is in default. The loan also does not require you to make any regular monthly payments and in addition, you can hold the loan for period of up to 25 years.

The Home Affordable Modification Program is the Obama Administration's new loan modification program aimed at helping communities by providing homeowners relief with home loans that are more affordable. HAMP is based on the fact that foreclosures are costly for everyone involved. Homeowners, mortgage lenders and investors, and even neighbors trying to sell or refinance their homes. The HAMP program requires servicers to do what is in the best interest of homeowners, lenders and investors-by requiring them to offer loan modifications in a consistent manner on all loans for which they are responsible when a modification is more cost effective to the lender then letting the home go in to foreclosure.