Terms In Real Estate - Equity

Terms to Know When You’re Dealing with Real Estate

Every professional sector has its distinct terminology which the average layman doesn’t understand. This year, my monthly blog will present real estate terms that a layman can understand so that even the most ‘average bear’ can understand and use to their real estate adventures.

This month’s term is Equity

Equity is a common motivating factor why so many people are selling their homes today. Equity is the value of your home above the total amount of liens on your home. You can calculate it by deducting the existing and any other outstanding mortgages less any liens on a said property. 

With today’s price appreciation, many homeowners are realizing they have more equity than they thought and they’re using it to move to a new home.