What does home equity mean?

<p>Hi, I'm just wondering, what does the term "home equity" mean when it comes to completing a financial aid paper?</p>

<p>A friend told me that it's how much someone will pay for a house minus the mortgage balance that's left. </p>

<p>But my parents don't pay mortgage, they built the house from scratch. What should I say on the form?</p>


<p>If there is no mortgage then it is the assessed value of the house (or how much your parents could get if they sold it). I’m assuming you are an international student?</p>

<p>Yes, I’m Romanian. And thank you very much, I was really confused</p>

<p>Home equity=value of house minus mortgage</p>