is the market value of a homeowner’s unencumbered interest in their real property. This is the difference between the home’s market value and the outstanding balance of all liens on the property. The property’s equity increases as the debtor makes payments against the mortgage balance, and/or as the property value appreciates.

Home equity may serve as collateral for a home equity loan or home equity line of credit (HELOC).

How and Where to Apply For a Home Equity Loan