Home Equity
Definition
- The portion of a property's value that the mortgage borrower owns outright. Essentially, it is the difference between the fair market value (selling price) of the home and what is left owing on all mortgages.
Synonyms
personal assets, home investment, financial worth
Acronyms
HE
Related Terms and Acronyms
- Asset — Definition,
- Anything of monetary value that is owned by a person. Assets include real property, personal property, and enforceable claims against others including bank accounts, stocks, mutual funds, and so on.
- Consumer Credit Service (CCS) — Acronym,
- A service that offers counselling about how to work out a realistic budget and debt repayment plan and work with creditors. The goal is to ensure that debts are paid back over time.
- Equity — Definition,
- Ownership in an asset.
- The value of a property minus outstanding mortgage debt and other liens.
- Home Equity Advantage Program (HEAP) — Acronym,
- Home Equity Line of Credit (HELOC) — Acronym, Very Important,
- An open-ended loan, paid as revolving debt, that is backed by the equity in the property.
➥ Also known as a Home Line of Credit. - Home Equity Loan (HEL) — Acronym, Very Important,
- A loan that can replace or be an addition to the first mortgage. Typically used as a home improvement loan.
➥ Also known as an Equity Take Out (ETO). - Housing-equity Partnership — Definition,
- An arrangement in which one buyer lives in a home and the other has an ownership stake as an investment. The partners split the capital gain after the property is sold.
- Monetary Value — Definition,
- A property's monetary value is its worth if sold at this moment in time.
- Net Worth — Definition,
- The total value of all assets, such as house, car, furniture and investments, minus all debts, such as mortgages and credit card bills.
- Sweat Equity — Definition,
- The value of the work put into a house by its owner. This can be used in place of a full down payment. Up to and including 50% of a down payment.
