Home equity is the difference between the mortgage 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 putting otherwise lazy idle money 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.
How Do You Build Home Equity?
Your home equity can increase in a few circumstances:
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