A method of borrowing in which a homeowner may borrow against home equity as needed using a checkbook or credit card. It differs from a standard loan in that the borrowing may be done over a period of time, preventing excess borrowing and limiting interest costs.

Equity

Ownership interest in a corporation in the form of common stock or preferred stock. It also refers to total assets minus total liabilities, in which case it is also referred to as shareholder's equity or net worth or book value. In real estate, it is the difference between what a property is worth and what the owner owes against that property (i.e. the difference between the house value and the remaining mortgage or loan payments on a house). In the context of a futures trading account, it is the value of the securities in the account, assuming that the account is liquidated at the going price. In the context of a brokerage account, it is the net value of the account, i.e. the value of securities in the account less any margin requirements.

Home equity loan

A loan secured by a primary residence or second home to the extent of the excess of fair market value over the debt incurred in the purchase.

Selling a Home

Looking to sell your home or just to find out the best practice for the process? Learn the steps you need to take to sell your home, and how to get the best price.

Home Equity

Looking for a second mortgage or to borrow against the money you have down on your house? Find out all you need to know in this comprehensive article about home equity.

Introduction to Buying a Home

Learn the steps how to make a sound financial decision when buying a house. Understand what considerations are needed when it's time to decide how much to spend and whether it is better to rent or buy a home.