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

The financial cushion of rising home equity and stock-market returns is driving some of the decline, economists and retirement advisers say.

From The Wall Street Journal • Apr. 7, 2026

Increases in service charge costs can also act as a barrier to staircasing, as they reduce the income available to fund greater home equity, the report found.

From BBC • Mar. 24, 2026

For him, that made it worthwhile to wager effectively everything outside of his retirement accounts and home equity.

From The Wall Street Journal • Feb. 25, 2026

The builder’s move-up buyers “benefited from growth in their home equity and stock market appreciation,” Yearley said.

From Barron's • Feb. 18, 2026

In early 2002 he got his hands on Household’s new sales document offering home equity loans.

From "The Big Short" by Michael Lewis