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

See Examples For:

home equity

Still, even including home equity, median net worth peaked at $410,000 for households ages 65 to 74 — and many can’t afford basic living costs.

From MarketWatch ● Jul. 22, 2026

Yet even when including any home equity, only 26% of households in their 30s have reached this threshold, in many cases because they lack liquid savings.

From MarketWatch ● Jul. 22, 2026

To cover costs, they took out a $300,000 home equity line of credit.

From The Wall Street Journal ● Jun. 13, 2026

In many metros, property owners with hefty piles of home equity and no reason to relocate are still sitting it out, giving buyers few options.

From Barron's ● May 31, 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