Equity


Definition of "Equity"

Rita Colburn real estate agent
Rita Colburn Long Realty West Valley

In connection with a home, the value of the home less the balance of outstanding mortgage loans on the home.

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Popular Real Estate Terms

Equity-to-value Ratio

Percent of the purchase price of property to its total appraised value. If a property is appraised at $400,000 and the price paid is $300,000, the rat ...

Niche Writers

Insurance companies that seek an economic advantage, thereby increasing their returns on equity by utilizing their specialized knowledge about a given ...

Title Insurance

Insurance against loss arising from problems connected to the title to property. A home may go through several ownership changes and the land on whi ...

Growing Equity Mortgage (GEM)

A mortgage on which the interest rate is constant, but the payments are structured to increase, so the loan is paid off much earlier. ...

Home Equity Line Of Credit (HELOC)

A mortgage set up as a line of credit against which a borrower can draw up to a maximum amount, as opposed to a loan for a fixed dollar amount. Intere ...

Open-end Loan

Where the borrower may add to the principal without renegotiating the terms of the loan. Additional sums borrowed under the terms of an open-end loan ...

Popular Real Estate FAQ

What Is Equity?

Equity is the financial interest or cash value of your home, minus the current loan balance(s). If selling the home, this would also be minus any cost ...

What Is A Second Mortgage?

A second mortgage is a type of mortgage on property that has alien already on the first mortgage. This mortgage is usually on the remaining equity in ...

Why Do People Refinance?

People finance to obtain a new loan in order to pay off the existing mortgage or to gain access to the existing equity in the home. ...

What Is A Private Mortgage?

Private mortgage insurance is insurance that protects mortgage lenders against default on loans by providing a way for mortgage companies to recoup th ...

Besides Making My Monthly Mortgage Payment, How Can I Build Equity Into My House?

When making your monthly mortgage payment, try to send a little bit more. This will go directly to the principal of the loan rather than the interest ...

What Is Earnest Money?

Earnest money is a deposit you make when you make an offer on a house. ...

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