A Beginner’s Guide to Home Equity

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

Home Value – Owed Amount = Home Equity

Consider the amount of equity you have in your home an asset. This asset can be used in the future, but never taken for granted. It does not rise overnight either and should be treated as a long-term asset that slowly appreciates. However, the interest you hold 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 leveraging opportunities with care. We do not advise using your portion of ownership 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 financial goals. Get in touch with a loan officer today.