Home Equity Loan - Equity is defined as the monetary value of a property or business beyond any amounts owed on it in mortgages, claims, liens, etc. In simpler terms, home equity is how much house you have earned.

Equity is the difference between what your house is worth and what you owe on it. For example, if your house is worth $120,000 and you owe $100,000, your equity is $20,000. You can get a home equity loan, depending on your credit rating and a number of other factors, for the $20,000 that you have built up in equity.