home equity

[ hohm-ek-wi-tee ]
/ ˈhoʊm ˈɛk wɪ ti /

noun Finance.

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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Origin of home equity

First recorded in 1895–1900
Dictionary.com Unabridged Based on the Random House Unabridged Dictionary, © Random House, Inc. 2020