Find out how much equity you have in your home. Equity is the portion of your home you truly own, free and clear of your mortgage.
What Is Home Equity?
Home equity is the current market value of your home minus what you still owe on your mortgage. As you pay down your mortgage and your home appreciates in value, your equity grows.
Frequently Asked Questions
How can I use my home equity?
You can access home equity through a Home Equity Loan (HEL), a Home Equity Line of Credit (HELOC), or a cash-out refinance to fund renovations, pay off debt, or cover major expenses.
What is a good amount of home equity?
Most lenders want you to retain at least 20% equity in your home after borrowing. Having 20% or more equity also means you likely avoided PMI when you bought.
Does home equity count as an asset?
Yes. Home equity is considered a significant asset on your personal balance sheet and can be used to build long-term wealth.