Equity Withdrawal

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Equity Withdrawal

1. The act or practice of borrowing against the value of one's home. One may withdraw equity only if the value of the home exceeds the remaining mortgage (otherwise, the borrower has negative equity). One may make an equity withdrawal to fund home improvements, a new home, an education, or almost anything else. See also: Home equity loan.

2. The amount by which the sale price of real estate exceeds the amount the seller paid for it.
References in periodicals archive ?
And third, relative to equity withdrawals, the rate of equity injections declined due to a fall in deposits from first-time buyers.
In "Financial Literacy and Mortgage Equity Withdrawals," Duca and Kumar examine whether an individual's financial literacy influences the decision to make or not make mortgage equity withdrawals.
The reliance on home equity withdrawals to fuel current spending is over.
Housing equity withdrawals figures from the BoE provided a further sign of an economy turning down.
But, there was also a fall in mortgage equity withdrawals.
There's also been a sharp decline in equity withdrawals as consumers struggle with the housing downturn.
Americans have made these mortgage equity withdrawals, or MEW, via home-equity loans, cash-out mortgage refinancing, and by making smaller down payments.
Moreover, a substantial rise in bankruptcies would require a quite-significant overall reduction in the national housing price level because the vast majority of homeowners have built up substantial equity in their homes despite large home equity withdrawals in recent years financed by the mortgage market.
tax reductions and refunds on consumption spending, the additional cash that consumers obtained from home equity withdrawals in the early part of the year, the continuation of large financial incentives to purchase automobiles, and so on.
The demand for large-scale renovations and big-ticket items has been tempered during this period as home equity withdrawals dwindled.
It also emerged yesterday that property equity withdrawals continued to fall during the second quarter of the year.
THE LAST few years have seen spectacular price rises, high levels of mortgage equity withdrawals and high confidence.