what is equity in a home
Equity in a home refers to the difference between its market value and the outstanding balance on any loans secured by the property. Essentially, it represents the portion of the home that you truly own outright. As you pay down your mortgage or as the value of your home appreciates over time, your equity grows. Equity serves as a valuable asset, offering financial flexibility and security. It can be leveraged for loans, renovations, or as a source of wealth accumulation. Building equity is a key goal for homeowners, providing stability and potential for future investments or financial endeavors.