Does equity in this context refer to the increase in the value of the whole home, or just the increase in the value that is paid into the mortgage? If the form

Does equity in this context refer to the increase in the value of the whole home, or just the increase in the value that is paid into the mortgage? If the former, duh? If the latter, wouldn't that just mean homeowners make more in general because many afforded the down payment to begin with?