Equity

Equity is the part of a property that you truly own, not the bank.It’s the difference between what the property is worth and how much money you still owe on the loan. Equity starts when someone buys a home, and makes a down payment. That down payment is the owner’s first equity in the home. Equity increases when you pay down the loan, or value of the property goes up. In simple terms, equity is the part of a property’s value that belongs to the owner after subtracting what is owed to the bank.