What is Real Estate Equity

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Real Estate Equity

Equity in real estate is the difference between the market value of a property and the amount you owe on any mortgages or loans secured by that property. Essentially, it represents the portion of the property that you truly own.

For example, if your home is worth $300,000 and you owe $200,000 on your mortgage, your equity is $100,000. As you pay down your mortgage or as the property value increases, your equity grows.

Equity can be used in various ways, such as securing a home equity loan or line of credit, or as a down payment on another property. It’s a key concept for real estate investors and homeowners alike.

As you pay down your mortgage or as the property value increases, your equity grows. This growth in equity can be a powerful tool for building wealth. Here are a few ways you can use equity.