A Beginner’s Guide to Home Equity

Simply put, home equity is the interest a homeowner holds in their property based on the current market value minus what they owe on the home. A basic formula for home equity might look something like this:

Home Value – Owed Amount = Home Equity

Home equity should always be considered as an asset that can be used in the future, but also never taken for granted. Home equity doesn’t rise overnight either and should be treated as a long-term asset that slowly appreciates. However, home equity can also decrease. There are a couple of ways you can increase and decrease your home equity.

Ways to Increase Your Home Equity

Things that Decrease Your Home Equity

Find the Right Loan with Chris Doering Mortgage

Make sure to handle home equity with care. It is never advisable to use home equity to fund unnecessary big purchases like a new car, TV, or other items. To help best increase home equity, find the right loan with our team. Our team of loan experts can help you quickly achieve your home equity goals. Get in touch with a loan officer today.