Equity in housing

Equity in housing is the difference between the market value of a property and the amount owed on any mortgage or loans against it. For example, if a home is worth $300,000 and the owner owes $200,000, the equity is $100,000. This equity represents the owner’s ownership stake in the property and can increase over time as mortgage balances decrease or property values rise. Building equity can provide financial security, access to loans, or resources for future investments, making it a key aspect of homeownership wealth.