Understanding home equity When you take the current market value of your home that you receive after an appraisal and subtract it from the amount you currently owe on your mortgage, that’s your home’s equity. Your home equity is how much of the property that you truly own. This is the formula you will use to answer the […]
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Understanding home equity
When you take the current market value of your home that you receive after an appraisal and subtract it from the amount you currently owe on your mortgage, that’s your home’s equity. Your home equity is how much of the property that you truly own. This is the formula you will use to answer the question, “How much equity is in my home"” Knowing the amount of equity you have in your home plays a vital role in major decisions like taking out a loan for repairs, improvements or to purchase a new home. How much equity do I have in my house"
To determine the amount of equity you have in your home, you need to have it appraised to get the market value. Once you have the home’s appraised value, you can figure out how much equity you have by subtracting that value from your current mortgage balance. Determining a home’s equity uses a simple formula:
        The appraised value of the home ? (minus) the mortgage bala...