Definition: The difference between the current market value of your house and the outstanding mortgage balance.
Examples:
Current market value of your house is $100,000; your outstanding mortgage balance is $80,000. Then, your equity is $20,000.
Equity
By Lee Wallender, About.com
Explore Home Renovations
Must Reads
About.com Special Features
Home Allergy Center
Banish mess, reduce allergens, and maintain a clean, healthy home. More >
Home Improvements Made Easy
Inspirational ideas and expert tips to help you pull off your next DIY project. More >
©2009 About.com, a part of The New York Times Company.
All rights reserved.