What is Home Equity in Real Estate?
The definition of home equity is simply the difference between your property’s value and what is owed on your mortgage.
If your property is valued at $800,000
And you still owe $300,000 on your home loan
Then you could have up to $500,000 in home equity.
The more you pay down on your mortgage and the more your property value grows, then your home equity increases.
Using Home Equity to Build Wealth
Depending on your financial circumstances and professional advice you receive you may be able to use your home equity for a new car, home renovations or other investment opportunities.
Any advice given is general only and has not taken into account your objectives, financial situation or needs. Because of this, before acting on any advice, you should consult a financial advisor to consider how appropriate the advice is to your objectives, financial situation and needs.