Equity
The portion of an asset you actually own — market value minus what you owe.
Home equity = home value minus mortgage balance. If your home is worth $400,000 and you owe $280,000, you have $120,000 in equity. Equity increases as you pay down the mortgage and as the home appreciates in value. Equity can be accessed through home equity loans or lines of credit (HELOCs) without selling the property.
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