What Is Home Equity?

Your house is more than a place to hang your hat. It’s also a long-term investment. Homeownership is part of the American Dream and home equity is a valuable byproduct of realizing that dream. It provides you and your family with a home that is your own and an opportunity for building wealth over time. This "wealth" is built through the creation of equity. What is home equity? Home equity is the value of your financial interest in your home. In other words, it is the actual property’s current ma