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Mortgage glossary
Equity
The difference between a property's current value and the debts secured by it. Equity may rise when the debt is reduced or the property value increases. It can also fall if the property value decreases or secured debt increases.
In plain language
This term may appear in conversations, forms, or documents during the mortgage process. If something important changes in your situation, ask how it may affect your case before making a decision.
This explanation is general and educational. It is not personalized advice, a loan offer, or a promise of approval.