In general, home equity is the amount of the home's current appraised value less any liens (mortgages) divided by the appraised value.
So, if your home is appraised at $500,000 and you have a $400,000 mortgage, your equity ($100,000) as a percent is 20%.
Your equity will increase or decrease, based on changes to the following:
After you've owned a home for a while, you may have seen an increase in equity due to paying down the loan, an increase in the home's value, or most commonly, a combination of the two. And during this time, you may also discover that you have financial needs like a home renovation, sending a child to college, unforseen medical expenses, etc. and would like to tap into this equity to fund these endeavors.
You can call me 1-415-345-4375, or email us to arrange a consultation today where I'll discuss your options and the ways you can leverage your home equity to meet these needs.