Equity is the difference between your home’s appraised value and what you owe on your mortgage. Another way to conceptualize equity is that it refers to your ownership claim on the cash value of your home. Thus, if your property is worth $500,000 and your mortgage balance is $200,000, you have a 60% interest ($300,000 / $500,000) and your lender has a 40% interest ($200,000 / $500,000). If your mortgage balance is zero, you have a claim of 100% of your home’s value.