Ask Bob Home Value How do I calculate my home's equity?
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How do I calculate my home's equity?

Equity is simply your home's current market value minus what you still owe on your mortgage. For example, if your home is worth $400,000 and you owe $250,000, you have $150,000 in equity. You can estimate your home's value through online tools or your agent, then subtract your loan balance from your monthly mortgage statement. Equity grows as you pay down your loan and as your home appreciates.

Why It Matters

Knowing your equity helps you understand your net worth and whether you qualify for a home equity loan or line of credit.

Related Questions

What determines my home's market value? How do I know if my home value has changed? How do online home value estimators work? What home improvements increase property value? Do schools affect my home value?

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