Equity is the part of an asset you actually own — what it's worth minus what you still owe on it.
Equity is the residual value of an asset after subtracting outstanding liabilities secured by it; at the operation level, it equals total assets minus total liabilities.
Equity reflects financial strength and cushion. Lenders look at it because more equity generally means lower risk.
If land is worth $500,000 and you owe $300,000 on it, your equity in that land is $200,000.
Planning a purchase or refinance secured by farmland? AgLoans.com helps farm families prepare a clear, lender-ready package for requests of $500,000 to $25 million secured by agricultural real estate.
Visit AgLoans.com