Home equity refers to the value of a homeowner’s interest in a property, which is calculated by subtracting the outstanding mortgage balance from the fair market value of the property. For example, if a property is worth $500,000 and the outstanding mortgage balance is $300,000, the homeowner has $200,000 in home equity.
What is Home Equity?
![What is Home Equity? Home-Equity](https://dans.realestate/wp-content/uploads/2023/03/Home-Equity-750x350.jpg)