Home BuyingHomebuying Glossary
Equity
Also known as Home Equity
The portion of your home's value you truly own — its value minus what you still owe on your mortgage.
In plain English
Equity is the difference between your home's current market value and your remaining mortgage balance. It grows over time as you pay down your loan and as your home appreciates in value.
Why it matters
Equity is often a homeowner's largest source of wealth — it's what you keep when you sell, and it can be borrowed against later through a home equity loan or HELOC.
Where you'll run into it
Guides and tools on TheBuyingPath that cover equity in context.
Related terms
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