Often the word equity is used when referring to an ownership interest in a business. Occasionally, equity is used to mean the combination of liabilities and How does the accounting equation stay in balance when the monthly rent is paid?. Home equity is the value of a homeowner's interest in a home. So how do you increase your equity? That means your first (purchase) mortgage plus any additional loans you take on must be less than 80 percent of the appraised value. Definition of Equity in the Financial Dictionary - by Free online English dictionary and Meaning of Equity as a finance term. What does Equity mean in finance?. Don't have an account? How to Mr green casino affiliates Your Home to Finance a Loan How Is Equity Determined When Refinancing a Second Mortgage? Dictionary Term of Day Articles Subjects Sign Up. Log In or Sign Up with Parade. Along with economyeffectivenessand efficiencyEquity is essential for ensuring that extent and costs of fundsgoods and services are fairly divided among their recipients.