home equity

American  

[hohm ek-wi-tee] / ˈhoʊm ˈɛk wɪ ti /

noun

Personal Finance.

1. the value of the portion of a person’s home that is free of debt, as mortgages, claims, liens, etc., and which the homeowner actually owns, calculated by subtracting the amount owed to lenders from the current market value of the home.

   Home equity can increase or decrease significantly with fluctuations in the local real estate market.

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Etymology

Origin of home equity

First recorded in 1895–1900

Example Sentences

Related: Parents are draining money from retirement accounts and home equity to pay for college.

From MarketWatch • Apr. 1, 2026

Increases in service charge costs can also act as a barrier to staircasing, as they reduce the income available to fund greater home equity, the report found.

From BBC • Mar. 24, 2026

He also mentioned the limitation that in its current form, the formula doesn’t account for people’s home equity or mortgage debt, though neither do many other investing guidelines.

From The Wall Street Journal • Feb. 19, 2026

The builder’s move-up buyers “benefited from growth in their home equity and stock market appreciation,” Yearley said.

From Barron's • Feb. 18, 2026

“Sure did. Fetched a pretty penny for it, too. God bless home equity and hipsters lookin’ to ‘revitalize’ or whatever the heck they’re calling it.”

From "Clean Getaway" by Nic Stone