What is it ?
In: Economics
It is basically how much of your property (that is the house and the actual land that the house is on, which can be anything from like a very tiny backyard to several acres of land depending on the “parcel” or area that you bought) you actually own compared to how much the bank owns through your mortgage (home loan).
So say you buy a house for $500,000 ten years ago, and you paid off $100,000 so you owe $400,000 still on the mortgage. Your equity would be $100,000 ($500,000 minus $400,000). Imagine the property value actually increased in those ten years to $600,000. Your equity would be $200,000 ($600,000 minus the $400,000 you still owe to the bank).
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