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Glossary

Equity

The share of an asset you truly own — its value minus what you owe on it.

Equity is an asset's value minus any debt against it. On a home worth $400,000 with a $300,000 mortgage, you hold $100,000 in equity.

Equity grows as you pay down the loan and as the asset appreciates; it's the inverse of the loan-to-value ratio.

Put it into practiceTry the Loan-to-Value (LTV) CalculatorRun your own numbers in seconds — free and private.

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