Equity is the difference between the price for which a home could be sold, and the total debts registered against it. Equity typically increases as the mortgage is reduced through regular payments. Additionally, market values and improvements to the property can also affect equity. As these factors change, the amount of equity in the home can grow, providing homeowners with greater financial leverage and potential profit upon sale.
*The information provided is for educational purposes only and should not be considered legal advice. For specific legal concerns or questions related to your mortgage, it is always best to consult with a qualified legal professional.*