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 Guide
Explore Home Renovations
Must Reads
- 9 Small Kitchen Photos
- 20 Great Kitchen Backsplash Ideas
- 19 Small Bathroom Ideas
- 20 Amazing Bathroom Tile Ideas
- 20 Easy Kitchen Paint Colors
Most Popular
By Category
©2012 About.com. All rights reserved.
A part of The New York Times Company.