One of the most impactful reasons to own a home is to build equity. Home equity remains one of the most significant drivers of wealth in the U.S., according to the latest data from the Federal Reserve Board, and it’s the largest asset for many homeowners. But for it to work for you, you have to understand how home equity works and the best ways to use it. Home equity definition Home equity is the portion of the property’s value that you own. If you pay cash for a home, you own 100% outright. But if you ...