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

The federal funds rate has a more immediate impact on interest rates for short-term debt, including home equity lines of credit.

From The Wall Street Journal ● Sep. 16, 2026

By the time that person turns 65, they will have nearly $1.6 million in home equity and no monthly mortgage payment, according to a calculator developed by Zandi.

From MarketWatch ● Sep. 16, 2026

Americans are sitting on record levels of home equity, but high rates have to some extent prevented them from turning that equity into cash for large-scale renovations.

From The Wall Street Journal ● Sep. 16, 2026

It found these retirees can also typically unlock around $100,000 in home equity by doing so.

From The Wall Street Journal ● Sep. 13, 2026

He was so smitten he went back every day for a week, making up dumb questions about home equity loans and IRAs.

From "Wintergirls" by Laurie Halse Anderson