Home Equity
/ˈhoʊm ˈɛkwɪti/
Definitions
- (n.) The portion of a property's value owned outright by the homeowner, calculated as the market value minus any outstanding mortgage or liens.
She accessed her home equity to secure a loan for home renovations.
Forms
- home equity
Related terms
See also
Commentary
Home equity is a key concept in secured lending, often used as collateral for loans; careful valuation and clear lien priority are important in drafting related documents.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.