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Home equity

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This is an old revision of this page, as edited by Stemonitis (talk | contribs) at 15:32, 1 April 2007 (stub sort; formatting). The present address (URL) is a permanent link to this revision, which may differ significantly from the current revision.

Home equity is the difference between mortgage(s) owed on a property and the current market value. Home equity has a zero rate of return and is not liquid. Home equity management is the process of putting otherwise lazy idle dollars to work in a liquid, safe, tax favored, way to create an arbitrage. Arbitrage, simply put, is borrowing money at one rate and earning a higher rate elsewhere.