GLOSSARY OF TERMS
The current economic crisis has brought these esoteric terms into mainstream conversation.
| TERMS | | Equity | | |
Having equity means having a share of ownership in a company, home or other asset. If you are purchasing a home, your equity equals the home’s current market value minus the amount you still owe on the mortgage.
Since the mortgage crisis, the housing market has taken a bit hit and home values have plummeted leaving homeowners with less equity in their homes. Some are even "upside down" on their mortgages, meaning they now owe more than their homes are worth. Many of these homeowners have fallen into foreclosure. |
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