What Is Home Equity?
Home equity is the difference between your home’s market value and the amount you still owe on your mortgage.
How Is Home Equity Calculated?
Subtract your remaining mortgage balance from your current home value.
Why Home Equity Matters
Home equity may help you qualify for a HELOC, home equity loan, refinance, or estimate proceeds if selling your home.
What Is a Good Loan-to-Value Ratio?
Lower LTV ratios may qualify for better lending options. Many lenders prefer 80% or lower.