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

While home equity loans have fixed rates, home equity lines of credit, which function like credit cards, typically have variable rates, meaning Fed rate increases quickly bump up homeowners’ monthly payments.

From The Wall Street Journal ● Sep. 16, 2026

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

Your home equity, if you have any, is exempt up until a certain limit under the homestead-exemption rules.

From MarketWatch ● 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

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

From "The Big Short" by Michael Lewis