Cash Equity

It may sound either redundant or contradictory, but “cash equity” is a thing (we promise).

Cash equity is your home value minus your mortgage balance. For instance, if your home is worth $100k and the balance left on your mortgage is $50k, you have a cash equity of $50k in your house.

What’s that? Housing prices in your area just went up, and now your house is worth $130k? Now you have $80k cash equity. Sweet.

Cash equity isn’t just important to homeowners; it’s also important to real estate investors. There are cash equity markets where big financial institutions play around with cash equity capital in the stock market. Hopefully, the values of real estate aren’t inflated, or else we could end up with another crash-and-recession.