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Equity is the difference of the amount of money owed for your home and the value of it. If your house 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 sign a home equity loan by putting your property down as your part of the bargain. You will receive an amount of money in return with an agreement to repay the money in monthly payments. If you don't repay the loan, then the lender can repossess your property and put it on the real estate market so they can get their money back.

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