Probably a good sign for my financial future that I have essentially no idea what "equity" is
Equity is the chunk of something that you actually own, after the assessment of debt liabilities against it. Most often this would be a house. Equity is (value) - (loan still unpaid).
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In the case of houses, home owners can generally take out new loans (by refinancing) on that equity value, 'cashing out' the equity. It is an important form of emergency or business-start-up capital for the Middle Class which is broadly unavailable to poorer folks.
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And thus a driver of inequality. Basically, you refinance the mortgage on the house by taking a new loan from the bank up to the value of the house (minus some amount), use some of that money to pay off the old loan in one shot and pocket the rest, thus 'cashing out' the equity
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