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.
If you're purchasing or refinancing, it may be a great time to lock in a rate.
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