What does "you have no equity" mean?

When getting a loan, the leaning bank must ensure it can be paid back somehow. Some type of equity is normally added such as a house, car, etc, which can be used to piggy bank off on for large loans. If you completely fail the loan repayments and interest rates, then the bank can recover itself but taking that asset instead and selling it.

The "equity" term's meaning depends very much on the context. In finance, in this case, you can think of equity as ownership in any asset after all debts associated with that asset are paid off. For example, a car or house with no outstanding debt is considered the owner's equity because he or she can readily sell the item for cash. Stocks are equity because they represent ownership in a company, etc.

You can then use this "equity" to get a larger loan for something else - even if you lose your job and income, they will still be covered and therefore much more likely to give you the loan.

To a loose extent it means you have no money/credit available.

Example

You buy a house for $100,000 and make payments for several years and the current value of your mortgage is $90,000, and your house is still valued at what you paid for it, you have $10,000 equity in the house. This means that a bank will give you a loan of $10,000 on the equity in your house, that means if you sell the house for what its worth ($100,000) you can pay back both loans, the main mortgage and the equity loan.

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RE:

What does "you have no equity" mean?

Was watching the movie "Yes Man" and there's a scene between Jim Carrey who is a loan officer and a guy who owns a rollerblade shop looking for a loan.

"I admit, business has been slow.

There's a lot less demand for a small Rollerblade shop...

...what with Big 5...

Avatars refer to a concept that is not any different at all from your "real" name as also only concept. This is a spiritual question because, in fact, there is nothing such as a You that exists. The You/Me/I which folks think they are is a linguistic convention for something that exists only in a dualistic consciousness. Importantly and ultimately, there is not a You and Your Life. There is not God except as your dualistic consciousness thinks one up. Knowing this or even just acting as if this were true changes behavior in a positive way. Thinking there is a God usually (not always) results in the worst kind of behavior because of the divisive delusion and ultimate arrogance it is based on. The practice of remembering and reminding one's "self" this is usually called religion in the broadest sense. Kshetra means a field of action and a holy place - sometimes site of a war - which affects consciousness in the way that physics describes reality. The World Trade Center Site in New York is one such Kshetra.

No Equity

no equity means no interest, no skin in the game, nothing of value to justify a loan.

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My name means "artful and creative". At least my mom says that that is what the baby book said. lol. Uhm, because...Our names give us a sense of identity in the physical world, and our souls are the source of our identity in the spiritual world. Therefore, in a spiritual sense, to be aware of one's own identity is to be aware of the nature of their own soul.

I don't consider it is correct