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

Let’s break out an acronym before we break out your home equity.

From MarketWatch • Apr. 23, 2026

An ideal candidate is typically a homeowner 62 or older with significant home equity — 50% or even more — and plans to remain in their primary home long-term.

From MarketWatch • Apr. 23, 2026

Wealth measures a household’s assets, like stocks, bank accounts and home equity, minus liabilities like mortgages, car loans and credit-card debt.

From The Wall Street Journal • Mar. 25, 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

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

From "The Big Short" by Michael Lewis