Real Estate Finance
The difference between a property's current market value and the total amount owed on all mortgages and liens against it.
Equity represents the owner's actual financial interest in a property. It increases as the mortgage is paid down and as the property appreciates in value. Negative equity (being 'underwater') occurs when the mortgage balance exceeds the property's market value. Equity can be accessed through a home equity loan or line of credit. In a sale, equity is the amount the seller receives after paying off all liens and closing costs.
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Real Estate Finance
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