Definition: Home Equity- in a nutshell, home equity refers to the current marketplace value of a home subtracted by the balance still owed on the property.

Determining how much equity you have in your home is actually quite simple. As stated above in the definition, you need to know the current market value of your property, which you can get through real estate agents or appraisals made on your home. Then you just need to figure out how much you still owe on the house, and subtract that from the total value to find how much equity you have in the property.

Since the term is a reference to the amount of “ownership” you have on a property, there are two factors that can affect this amount. The first is how many mortgage payments you’ve made up until the appraisal. The second is any improvements made to the home that might increase its value, (like adding additional rooms or a pool or patio addition.

Whether you’re looking to refinance your home or just looking to take out a commercial loan, Loan Home can help set you up with the tier-one lenders and get you the loan you deserve. Fill out our contact form and get started today.