How Do I Figure Out How Much Equity I Have

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Finding how much equity you have at home is quite simple and easy. First, you would have to know how much your home is worth (market value) which is determined through many ways such as by the sales price or by getting an appraisal. But the most accurate way would be getting an appraisal or an approximation done on your home. This can be performed by a local real estate agent.

If ever you refuse to spend some money on a real estate agent for a home appraisal, you can also use any home value search engines available on the internet such as Zillow or Cyberhomes.
Once you determine an estimate of how much your home is worth, the formula would be simple. Just subtract the amount of home appraisal from what you currently owe on your home. The result would be the equity you have in your home. Be informed that your equity is not a fixed number. Your equity will be changing as time passes, along with the changes in the value of your home and the amount you still owe.

Let us cite an example. Let us say your home is worth $200,000. The amount you still owe for it is $120,000. Subtract the two variables. The equity you have in your home would be $80,000.

Many still mistake the equity as cash on hand. But it is not. Equity is a potential number. Even if it changes over time, you will not gain or lose anything through it.