Home equity is the money borrowed on the build up equity of the house. Equity is the difference between the market value of the house and the amount of debt on the house. Thus amount of home equity loan you can avail on your house will directly depend on the debt still owed on the house.

Typically the home equity loan takes less time then refinancing your mortgage and it can be considered a good option if you require cash to address your immediate financial needs. It can be used to payoff your bills or fund the educational expenses of your children. .