home equity

[hohm ek-wi-tee]

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.

Word History and Origins

Origin of home equity¹

First recorded in 1895–1900

Example Sentences

The company recorded nearly $945 million in home loan originations, including $352 million in home equity loans.

Read more on Barron's

For baby boomers facing a retirement shortfall, using home equity is a possibility, Greig said.

Read more on MarketWatch

I have $400,000 in home equity in my main home and vacation home, with small mortgages on both.

Read more on MarketWatch

The report said, “Housing market conditions…may be shifting the allocation of savings, making financial assets like stocks relatively more attractive or accessible than home equity.”

Read more on The Wall Street Journal

If I had done that, I’d have sold my house and moved into a one-bedroom apartment by now and would be living off my home equity.

Read more on MarketWatch