Your home equity value is the difference between the current market value of your home and the total sum of debts registered against it.
Home equity can be a long-term strategy for building wealth. This is seen where you pay what you owe while your home gains value.
Formula to calculate home equity.
Example:
Suppose you owe $100,000 on a mortgage for your home, which was recently appraised at $300,000. Calculate your home equity.
Therefore, your home equity is $ 200,000.
