Your home equity is the current value of your house minus the outstanding mortgage amount. Your equity grows as you pay down your mortgage or if your home's value increases. The equity in your house can be used as collateral for HELOCs and home equity loans, which can be considered as a second mortgage since they are backed by the equity in your house.
If you are considering a HELOC, understand these pitfalls first →← Curating the web to find the most interesting and helpful information about your money.