Equity
Quick Summary
The portion of your property value you own.
ELI5 Explanation
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It is your home's value minus what you still owe.
Detailed Explanation
Private lenders prioritize equity because it protects downside risk. More equity can unlock better rates and higher approval odds.
Example
A home worth $900,000 with $500,000 debt has roughly $400,000 equity.
Why It Matters
Equity is central to private mortgage underwriting.