Home Equity Calculator
Calculate how much equity you have built in your home. Home equity is the difference between your home's current market value and the amount you still owe on your mortgage.
Understanding Home Equity
Home equity represents your ownership stake in your home. It's calculated as:
Home Equity = Current Home Value - Total Debt
Ways to Build Home Equity:
- Pay down your mortgage: Each monthly payment reduces principal
- Home value appreciation: Market increases boost equity
- Home improvements: Renovations can increase value
- Extra payments: Additional principal payments accelerate equity growth
Using Your Home Equity:
- HELOC: Home equity line of credit for flexible borrowing
- Home equity loan: Lump sum loan at fixed rate
- Cash-out refinance: Replace mortgage and take cash difference
- Reverse mortgage: For seniors 62+ to access equity
Equity Percentage Guidelines:
- 0-20%: Building equity, limited borrowing options
- 20-50%: Good equity position, eligible for most loans
- 50-80%: Strong equity, best rates and terms
- 80%+: Excellent position, maximum financial flexibility