The difference between a property’s value and debt secured by the property.
Put this term into context.
Use related guides, calculators, and magazine features to see how this concept affects real home-equity decisions.
Related Education Guides
Home Equity Loans for Veteran Homeowners: When a Fixed Second Payment May Fit
For veteran homeowners who want a known lump sum, a home equity loan may provide a fixed-payment alternative to a revolving line of credit.
Read guide →Home Equity Loan Closing Costs: What to Compare Beyond the Rate
A fixed rate is only one part of a home equity loan decision. Compare fees, term, payment, lien position and total borrowing cost.
Read guide →HELOC vs. Home Equity Loan for a Known Expense
A known one-time expense can make the choice between revolving credit and a lump-sum second mortgage easier to frame.
Read guide →Home Equity Loan vs. VA Cash-Out Refinance
Veteran homeowners with a defined cash need often face a structural choice: add a second mortgage or replace the first mortgage through refinancing.
Read guide →Related Magazine Features
The Low-Rate Mortgage Problem: Accessing Equity Without Replacing a Great First Mortgage
Options investors can consider when they want equity access but do not want to give up an attractive existing first-mortgage rate.
Read feature →From One Rental to Five: Using Equity to Expand a Portfolio
A hypothetical portfolio-growth case study showing how existing rental-property equity may help support future acquisitions or improvements.
Read feature →DSCR HELOANs: Turning Rental Equity Into a Lump Sum
A fixed, lump-sum approach to accessing investment-property equity without necessarily replacing the first mortgage.
Read feature →
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