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

Higher-end shoppers, meanwhile, are being buoyed by a rising stock market, growing home equity and sometimes pay increases as well.

From Barron's

Higher-end shoppers, meanwhile, are being buoyed by a rising stock market, growing home equity and sometimes pay increases as well.

From Barron's

“The main form of most people’s retirement savings — except the very wealthy — is their house, not the market. Lower-income people are less likely to be homeowners and they tend to have less home equity. They’re less likely to be able to sell their homes or do a reverse mortgage and live off the proceeds.”

From MarketWatch

This approach, Dedousis said, makes ADU projects far more feasible for newer homeowners, whose lack of home equity limits their borrowing.

From Los Angeles Times

Other ways to borrow money for an ADU, such as a home equity loan or line of credit, typically set lower loan-to-value limits, but some go up to 90% of the property value with the ADU.

From Los Angeles Times