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The Webster's definition of equity is "the value of a property or of an interest in property in excess of claims or liens against it." In simpler terms, it is the value of your home less any amount owing against it in things such as mortgages. For example: If your home is worth $350,000, and you owe $250,000 to the bank, then you have $100,000 in current equity. ($350,000 - $250,000 = $100,000).
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