Home equity
The portion of a property’s value you own free and clear — its value minus the loans secured against it.
In plain terms
Home equity = market value − mortgage balance(s). It grows as you pay down principal and as the property appreciates. Lenders let you borrow against it through a HELOC or home equity loan, typically up to a combined loan-to-value ceiling of 80–85%. Estimate your borrowing capacity with the HELOC calculator.