Yes!  It’s a really good thing.  If you own your home outright, you’re giving up your equity to get cash, so it’s not a very good financial decision, but it’s a pretty common decision because of the short-term benefits.
assistant
Yes, it can be a good thing for people who need extra money and don't have good credit.
assistant
What is a home equity loan?
user
Home equity loans are a financial product that allows you to borrow against your home, up to a certain limit.  The interest rate is generally low, and the terms are fairly generous.
assistant
So they take your home as collateral?
user
It's a different sort of collateral than a mortgage is, it's much less like an investment.  And also the loan term is generally shorter.
assistant
So it is a good thing?
user