mortgage

What is equity?

 

What is equity?

The Bankrate.com financial term of the day is: "equity."

When you own a home, the bank may be the owner more than you are. Equity is the part of the home's value that you can truly say you own. You calculate equity by subtracting what you owe from the home's fair market value. Equity increases as the mortgage is paid down and as appreciation causes the property to be worth more.

Equity is often thought of as the money you have in your home -- and we don't mean in a safe or under the mattress.  

To find a great rate on a home loan, visit the Mortgage section at Bankrate.com.

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
MORTGAGE & REAL ESTATE NEWSLETTER

Timely market news and advice for consumers ready to buy, sell or invest in real estate. Delivered weekly.

Blog

Jean Chatzky

Jean Chatzky: Buy a home now?

Whether you're talking interest rates, PMI or new down payment requirements, 2015 may be the last best year to buy. Here’s how to do it right.  ... Read more

advertisement
Partner Center
advertisement

Connect with us