Home Equity Calculator
What is Home Equity?
Home equity is the portion of your home that you truly own — the difference between your home's current market value and the total amount you still owe on your mortgage and any other liens.
For example, if your home is worth $350,000 and you owe $220,000 on your mortgage, your equity is $130,000 (about 37%). As you pay down your mortgage or your home appreciates in value, your equity grows.
How to Use Your Home Equity
HELOC (Home Equity Line of Credit) lets you borrow against your equity at a variable rate, much like a credit card. Most lenders allow you to borrow up to 80% of your home's value minus your existing mortgage balance.
Home Equity Loan gives you a lump sum at a fixed interest rate. Cash-Out Refinance replaces your mortgage with a larger one and gives you the difference in cash. All three options use your home as collateral.