Home equity is an important topic to be aware of if you are a homeowner, because you just never know when you are going to need to go ahead and get a home equity loan. Whether you need to borrow a substantial amount of money that you are not able to get elsewhere or you just think that this would be an ideal type of loan for you, you are not going to make it very far unless you know what home equity is.
Home equity is the value that a homeowner has in their home. The more of your mortgage loan that you have paid off the more of the house that you own and therefore the more equity you have in your home. Obviously then once you actually own your home because you have paid off the entirety of your mortgage, you have all the equity in your home and would be able to get a very large amount of money loaned to you by the right lender, by putting your home up as collateral with a home equity loan.