Homeownership Equity

Homeownership equity refers to the portion of a home's value that the owner truly owns, calculated as the current market value of the home minus any outstanding mortgage debt. For example, if your home is worth $300,000 and you owe $200,000 on your mortgage, your equity would be $100,000. This equity can grow over time through mortgage payments, appreciation in property value, or home improvements. Home equity can be accessed through refinancing or home equity loans, providing homeowners with financial resources for other expenses or investments.