Are you tight on money and need some cash right now? Well for those who own a home, you can take out something called a home equity loan.

First, you need to understand what home equity is. The equity on your home is the value of your property based its market value, unpaid mortgage, and debt. Therefore, a home equity loan is a loan you take out where you use your home as collateral. You are basically borrowing the amount of money that your house is worth. Recently, with a major drop in property value across the country, many people have been forced into foreclosure since they owed a lot more money than their house was now worth.

Most banks offer home equity loans with a fixed rate and a fixed term for you to pay the loan back. Terms often range between 10 and 15 years. Once you get approved for the loan, you can use the money for anything you want, as long as you eventually pay it back.

Still unsure about home equity loans? Read our home equity guide - it breaks down the basics in easy to understand language.