What is Home Equity?
The difference between your home's value and mortgage balance. Builds through payments and appreciation. Can be accessed via refinancing or HELOCs.
Home equity is the difference between your home's market value and what you owe on your mortgage. For example, if your home is worth $400,000 and you owe $300,000, you have $100,000 (25%) in equity. Equity builds through mortgage payments and home appreciation. You can access equity through cash-out refinancing, HELOCs, or home equity loans.