What is Home Equity?
Home Financing
Home equity is the financial interest in your home. It is the difference between the current market value of your property and any liens, such as the balance owed on the mortgage. Paying down your mortgage, upgrades or renovations, and property value increases can all influence how much value there is your home and how much equity you can draw on.
| Value of Your Home: | $300,000 |
| Minus the Amount You Owe: | $200,000 |
| Your Home Equity: | $100,000 |
Calculate the Equity in Your Home
Home equity is an asset that you can leverage to borrow funds for important financial needs such as major home projects, debt consolidation, college tuition, and more. This can be a benefit since home equity-based borrowing is generally at a lower interest rate than credit cards or personal loans. Learn more about how you can use the equity in your home as collateral and convert it as cash for your financial needs.
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