Definition
The difference between a property's market value and the total debt secured by it.
Example
A $480,000 home with a $312,000 mortgage represents $168,000 of equity.
Related terms
Frequently asked questions
What does Equity mean in real estate?
The difference between a property's market value and the total debt secured by it.
How is Equity used in practice?
A $480,000 home with a $312,000 mortgage represents $168,000 of equity.
This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.