Determining the Amount of Equity in your Home is Simple
If you want to make a home improvement, go on vacation, or take care of an unexpected expense, the equity in your home may be a great way to accomplish each of these things.
A Home Equity Line of Credit, or HELOC, is a revolving line of credit that gives you the power to choose when and how often to borrow against the equity in your home. The amount of money you can borrow is determined by the difference between how much money is left on the mortgage for your home and your home’s market value.
Determining the amount of equity in your home is easy. Take the market value of your home and subtract any outstanding mortgage or liens. For example, if you have a home with a $100,000 market value and you have $60,000 left to pay on your mortgage, then your equity is $40,000.