Real Estate Word of the Day: Equity
Posted by Tom Crimmins Realty on
Real Estate Word of the Day: Equity
Equity is the difference between the market value of a property and the outstanding balance on a mortgage or any other debts secured by the property. In simpler terms, it's the portion of your property that you truly own outright. As you pay down your mortgage and your property's value appreciates, your equity in the property grows. Equity is not just a number on paper; it's a powerful financial asset that can have a significant impact on your financial well-being.
Equity is one of the primary ways people build wealth through real estate. As you pay down your mortgage, your equity increases, and if the property's value appreciates, your wealth grows even faster. Over time, this can lead to substantial financial…
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