---
title: What is equity?
description: Equity is the measurable value of a property (i.e., fair market value) above and beyond that owed on a loan (i.e., all outstanding mortgage loan balances).
---

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# What is equity?

## The measurable value of a property above and beyond that owed on a loan.

Home equity is the measurable value of a property **above and beyond that owed on a loan.** Essentially, it is the difference between the home’s [fair market value](https://www.jvmlending.com/glossary/#fairmarketvalue) and all outstanding mortgage loan balances. **Equity grows as the property owner pays off the mortgage and/or as the value of the home [appreciates](https://www.jvmlending.com/glossary/#appreciation)with the market.** See [cash out](https://www.jvmlending.com/glossary/#cashoutrefinance) and rate and term refinances to see how the equity in your property may benefit you. 

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