What Is Home Equity?
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Key terms
- Home EquityThe portion of your home that you truly own, calculated as the property's market value minus what you owe on your mortgage. Builds over time through mortgage payments and property appreciation.
- EquityThe value of ownership in an asset after debts are subtracted. In real estate, it's the property value minus what you owe. In stocks, it represents ownership shares in a company.
- HELOC (Home Equity Line of Credit)A revolving credit line secured by your home equity. You can borrow, repay, and borrow again up to your credit limit, typically with variable interest rates.
- Proof of WorkA consensus mechanism that requires miners to solve computationally intensive mathematical puzzles to validate transactions and add new blocks to the blockchain. It was the first consensus method used in blockchain technology and remains the mechanism behind Bitcoin. While highly secure, Proof of Work is criticized for its significant energy consumption and environmental impact.
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