These and more questions are what a consumer usually thinks about when considering refinancing his or her mortgage. Loan repayments, penalty fees, closing costs and down payment are usually also included in the loan's agreement. Your credit ratings get worse when you don't make payments on time. People apply for home equity loans for several reasons. When Lending money from any financial institution, your credit score always has an impact on the rate you are quoted. Poor credit rated consumers find them confused before applying for a home equity loan. These days the rates offered by many mortgage loan lenders happen to be very competitive and consumer attracting.