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What is home equity?


//house-home.news-articles.net/content/2025/05/27/what-is-home-equity.html
Published in House and Home on Tuesday, May 27th 2025 at 17:29 GMT by KUTV   Print publication without navigation

  • It's the portion of your home you own outright. Its uses are almost endless.

Home equity refers to the portion of a home's value that the homeowner actually owns outright, calculated as the difference between the home's current market value and any outstanding mortgage balance. It represents an asset that can increase over time as the homeowner pays down their mortgage or as the property value appreciates. Home equity can be accessed through loans or lines of credit, which can be used for various purposes such as home improvements, debt consolidation, or other significant expenses. However, using home equity as collateral for loans carries risks, including the potential loss of the home if the loan cannot be repaid. Understanding and managing home equity is crucial for homeowners looking to leverage their property's value effectively.

Read the Full KUTV Article at:
[ https://kutv.com/money/mortgages/what-is-home-equity ]

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