Defined as: “a value of a property or of an interest in it in excess of claims against it.” There are a lot of folks who preserved their equity and in recessionary times like these, have much more confidence in their future…and maybe a roof over their head, than the folks that were too highly levered. Many folks have found out that a 50% leverage ratio goes quickly to 100% when the market turns down. When the market goes up, you make money though on Other Peoples Money…that’s what drives the risk. I might add that risk is fine…so long as you are very careful with the equity in your home. Don’t buy more home than you can afford and remember…”The best home that I have seen is the one that is paid for.”