Mortgage vs Home Equity Loan Understanding the Key Differences 

What is the difference between a mortgage and a home equity loan Okay well first of all you can't have a home equity loan until you have a mortgage or a house Okay So let's start with the mortgage is usually what's used to purchase the house When you get a mortgage basically what I'm doing is I'm agreeing to make a payment I'm building equity right But I can't go reuse that again When I have a home line of credit or home equity line of credit if I borrow a ten thousand to buy or finance a car and then I paid it off I can go use that money again anytime I want So it's an advantage to have that line of credit Kind of like when you watch Shark Tank and they say we'll finance the inventory and then just give them a line of credit to say we financed it you paid it off finance it paid it off use it at will It's still cheaper though to acquire a house through squatters rights though right I understand that is the newest and best way to go about it Although in Florida I think they just quashed that I heard that I heard that That's why I don't live in Florida They squash the squatter Can you get a line of credit after you squatted in a house and acclaimed it then