DEFINITION of 'Home Equity'
The value of ownership built up in a home or property that represents the current market value of the house less any remaining mortgage payments. This value is built up over time as the property owner pays off the mortgage and the market value of the property appreciates.
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BREAKING DOWN 'Home Equity'
Home equity represents one of the largest sources of net worth for most investors. Home equity can be borrowed against through a home equity loan or home equity line of credit (HELOC).
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RELATED FAQS
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How do I calculate how much home equity I have?
Even though it is normally assumed most people know their home equity, many are still confused about the topic. It is an ... Read Full Answer >> -
Do FHA loans require escrow accounts?
Federal Housing Administration (FHA) loans require escrow accounts for property taxes, homeowners insurance and mortgage ... Read Full Answer >> -
Do FHA loans have prepayment penalties?
Unlike subprime mortgages issued by some conventional commercial lenders, Federal Housing Administration (FHA) loans do not ... Read Full Answer >> -
Can FHA loans be refinanced?
Federal Housing Administration (FHA) loans can be refinanced in several ways. According to the U.S. Department of Housing ... Read Full Answer >> -
Can FHA loans be used for investment property?
Federal Housing Administration (FHA) loans were created to promote homeownership. These loans have lower down payment requirements ... Read Full Answer >> -
Do FHA loans have private mortgage insurance (PMI)?
he When you make a down payment from 3 to 20% of the value of your home and take out a Federal Housing Administration (FHA) ... Read Full Answer >>