Home equity agreements provide an alternative to traditional borrowing methods such as home equity loans and refinancing a mortgage. Through a lien on the home, a homeowner can receive a lump sum of cash in exchange for a percentage of the home's appreciated value. There are no interest rates, but they must pay back the amount provided within a specified period or upon the sale of the home. The homeowner is still responsible for property taxes and other fees associated with the home under a home equity agreement. It is important to be aware of the pros and cons of this option before making a decision.