What Is Home Equity?

Your house is more than a place to hang your hat. It’s also a long-term investment.

Interior of home with front door open and key chain in the shape of a house hanging from the lock.
(Image credit: Getty Images)

Homeownership is part of the American Dream and home equity is a valuable byproduct of realizing that dream. It provides you and your family with a home that is your own and an opportunity for building wealth over time. This "wealth" is built through the creation of equity.  

What is home equity? 

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Donna LeValley
Personal Finance Writer

Donna joined Kiplinger as a personal finance writer in 2023. She spent more than a decade as the contributing editor of J.K.Lasser's Your Income Tax Guide and edited state specific legal treatises at ALM Media. She has shared her expertise as a guest on Bloomberg, CNN, Fox, NPR, CNBC and many other media outlets around the nation.