Equity for Housing

Equity for housing refers to the difference between the current market value of a property and the amount owed on any loans or mortgages secured against it. It represents the owner's ownership stake in the property. For example, if a home is worth $300,000 and the mortgage balance is $200,000, the equity is $100,000. Building equity can happen as mortgage debt decreases over time or if property values increase. This equity can be a financial resource, allowing homeowners to borrow against it through loans or lines of credit, or to realize wealth when selling the property.