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 Secured Home Equity 

Secured Home Equity exists when certain negotiable instruments are indexed, recorded and perfected to protect the intrinsic value of the equitable interest a homeowner builds in their home as prescribed under the Uniform Commercial Code (UCC). Unlike unsecured home equity - with secured home equity the intrinsic value of the homeowner's equitable interest is be fully protected. The homeowner's secured interest is not governed by the House Price Index (HPI). The intrinsic value is the actual value or real value the homeowner invested in the home, beginning with the down payment. Before the housing market crash of 2008, as a result of mortgage securitization, now a standard practice, homeowners were not concerned about loosing the equitable interest they built in their homes. After the meltdown, homeowners recognized the need to protect the the intrinsic value of their homes's equity, not only to hedge against foreclosure, but to recover their out-of-pocket costs in the event they purchased their home in a housing bubble due to falsely inflated market.

Equity
Black's Law Dictionary defines Equity as: "Justice administered according to fairness as contrasted with the strictly formulated rules of common law. It is based on a system of rules and principles which originated in England as an alternative to the harsh rules of common law and which were based on what was fair in a particular situation. One sought relief under this system in courts of equity rather than in courts of law. The term "equity" denotes the spirit and habit of fairness, justness, and right dealing which would regulate the intercourse of men and men. Giles v. Department of Human Resources Development, 11 Cal.3d 313, 113 Cal.Rptr. 374, 380, 521 P.2d 110. Equity is a body of jurisprudence, or field of jurisdiction, differing in its origin, theory, and methods from the common law; though procedurally, in the federal courts and most state courts, equitable and legal rights and remedies are administered in the same court.

A system of jurisprudence collateral to, and in some respects independent of "law"; the object of which is to render the administration of justice more complete, by affording relief where the courts of law are incompetent to give it, or to give it with effect, or by exercising certain branches of jurisdiction independently of them."

InvestorWords defines Equity in Item 3 Real Estate as: "The difference between what a property is worth and what the owner owes against that property (i.e. the difference between the house value and the remaining mortgage or loan payments on a house)."

Home Equity
Investopedia defines Home Equity as: “The value of ownership built up in a home or property that represents the current market value of the house less any remaining mortgage payments. This value is built up over time as the property owner pays off the mortgage and the market value of the property appreciates.”

InvestorWords defines Home Equity as: “The current market value of a home minus the outstanding mortgage balance. Home equity s essentially the amount of ownership that has been built up by the holder of the mortgage through payments and appreciation. Typically, residential property is bought through a mortgage, which is then paid off over a number of years, often 15 or 30. After the mortgage has been fully repaid, the property then belongs to the mortgagor, namely the buyer. In the interim, however, the buyer simply builds up equity in the home. This is what a home equity loan borrows against. Although that equity cannot be sold, banks will lend money against it. Home equity loans offer significant tax savings due to the fact that the interest paid on a home equity loan is tax-deductible. Home equity loans are often used to consolidate other debt with high interest rates (like credit card debt), to finance large expenses (such as college or a wedding), or to purchase other costly items. There are two main types of home equity loans. The first type is the traditional home equity loan, also known as the second mortgage, which lends out a lump sum of money that must be repaid over a fixed period. The second type is the home equity line of credit, which provides the borrower with a checkbook or a credit card that is used to borrow funds against the home equity. Funds borrowed from a traditional home equity loan start accruing interest immediately after the lump sum is disbursed; funds borrowed from a home equity line of credit do not begin accruing interest until a purchase is made against the equity.”

Secured Equity
Black's Law Dictionary defines the word Secured as: "Supported or backed by security or collateral such as a secured debt for which property has been pledged or mortgaged."

Unsecured Equity
Unsecured is defined at InvestorWords as: "Backed not by collateral but only by the integrity of the borrower. opposite of secured."

Investopedia states that the definition of Unsecured is: "A loan or equity interest that is given without any guarantee of payment, performance, satisfaction or opportunity for return from the recipient. No property, interest or security is used as collateral in either a guarantee or a pledge."

Intrinsic Value
InvestorWords' defines Intrinsic Value as: “The actual value of a security, as opposed to its market price or book value. The intrinsic value includes other variables such as brand name, trademarks, and copyrights that are often difficult to calculate and sometimes not accurately reflected in the market price. One way to look at it is that the market capitalization is the price (i.e. what investors are willing to pay for the company) and intrinsic value is the value (i.e. what the company is really worth). Different investors use different techniques to calculate intrinsic value.”

Black's Law Dictionary defines Intrinsic Value as: "The true, inherent and essential value of a thing, not depending upon accident, place or person but same everywhere and to everyone. King v. U. S., D.C.Colo., 292 F.Supp. 767, 766. The value of the thing itself, rather than any special features which make its market value different.

Extrinsic Value
Black's Law Dictionary defines Extrinsic Value as "Foreign; from outside sources; dehors." Webster's Unabridged Dictionary defines Extrinsic as "Not essential or inherent; not a basic part or quality; extraneous: facts that are extrinisic to the matter under discussion; being outside a thing; outward or external; operating or coming from without: extrinsic influences.