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Equity is the difference between the money owed for your house and what your home is worth. If your home is valued at 120 thousand dollars and you still owe 50 thousand dollars to the lender, then your amount of equity is 70 thousand dollars. You can take on a home equity loan by putting your home down as backing. You'll receive a lump sum amount of money from the bank with acknowledgement to repay the money in monthly payments. If you don't repay the loan, then the bank can repossess your property and sell it to get their money back.
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