Real Estate Term: Equity

Equity: The investment a homeowner has in their property after purchase. Equity is calculated by taking the market value of the home and subtracting any mortgages or liens against it. The amount that is leftover is the amount of equity you have in the home.

If you sell a home, you’ll get to keep the equity that has accrued once all expenses are paid!

Essentially, equity is the difference between what you owe on your mortgage and what your home is currently worth. Why is this important? Well…. for one…. you get that when you sell a home AND for most homeowners, it is their largest financial asset and an incredible way to build wealth!

Want to chat more about how to build or cash out on equity? Call me today to get started!

Your Homie In Real Estate
: 678-994-1212
: christinadobbs@kw.com
Keller Williams Atlanta