What Is Home Equity?

Home equity is the difference between the amount you owe on a mortgage and what the home is worth. It’s essentially what you own in a home. The amount of equity in a house can grow over time as you make payments and the property’s value increases.

More technically, home equity is the property’s current market value minus any liens, such as a mortgage, that are attached to that property.

Home equity is an asset that you can borrow against to meet important financial needs such as:

• paying off a high-cost debt
  paying college tuition
  funding home upgrades

Contact us to learn more about how home equity works, how to calculate it, and how you can use it.