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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
Jumbo Loans
A type of mortgage that exceeds the conforming loan limits set as eligible for purchase by government-sponsored enterprises.
Adjustable Rate Mortgage (ARM)
A home loan with an interest rate that is fixed for a certain period, after which it may fluctuate with the market.
Credit Limit
The maximum amount of credit that a financial institution or other lender will extend to a borrower.

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