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 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 with the market. See cash out and rate and term refinances to see how the equity in your property may benefit you.