Definition
The portion of your home's value that you truly own, calculated as the home's market value minus any outstanding mortgage balance. Home equity can be accessed through a HELOC, cash-out refinance, or home equity loan.
Related Property & Valuation Terms
Recently sold properties with similar characteristics used by appraisers to estimate a home's market value. Appraisers typically look at sales within the past 6 months and within a reasonable distance of the subject property.
The legal document that transfers ownership of real property from one party to another. The deed is recorded with the county recorder's office to create a permanent public record of the ownership transfer.
The difference between your home's current market value and the amount you still owe on your mortgage. Equity builds as you pay down your loan and as the property appreciates over time.
The price a property would sell for between a willing buyer and a willing seller, both with reasonable knowledge of the facts and neither under pressure to complete the transaction.
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