Home equity is the portion of your house that you own from all the loan payments that you’ve done. Your ability as the homeowner to borrow money from your home equity is called an equity takeout. This process allows you to use your home equity to achieve your other financial goals.
This is usually done by borrowing as much as 85% of the current amount of your home equity from a bank or a private lender. Once your loan is approved, you will then receive the money in a single lump-sum payment.