What does HOME EQUITY mean?

MoreMerchant.com reader’s question:
What does the term HOME EQUITY really mean?

Reader’s Answer:
What you have said has nothing to do with true home equity.

Home Equity is what your house is worth minus what you owe on it. Say you buy the house and in five years it is worth $150,000, but you only owe $100,000. You have $50,000 worth of equity in the house.

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