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Home Equity
The current market value of a homeowner's property minus any outstanding mortgages or liens on the property.
More Details
Home equity is the value of a homeowner's interest in a property. It is the difference between the property's market value and any outstanding mortgage or other liens on the property.
Example
If you have a mortgage balance of $200,000 and the property is worth $500,000, the home equity in your property would be $300,000.
Related Terms
Lender
A financial institution or individual that provides money to a borrower with the expectation of being repaid, often with interest.
Minimum Payment
The smallest amount of money owed on a balance to remain in good standing.
Refinance
The process of paying off an existing loan with a new loan, typically in order to obtain a lower interest rate or to change the terms of the loan.

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