Home Equity
Home equity is the difference between your home's value and what you owe on it. Depending on qualification and lender requirements, homeowners may be able to access a portion of that equity.
The value you've built in your home has options.
What is home equity?
Your home's current value minus your remaining mortgage balance. It grows as you pay down your mortgage and as your home's value changes.
How it can be accessed
Options may include refinancing, a home equity line of credit, or other products — subject to qualification and lender criteria.
What it's used for
Renovations, education, investments, or consolidating debt — the right use depends on your goals.
Program options
Certain programs exist for specific situations, such as homeowners aged 55+. Ask whether any apply to you.
Frequently asked questions
How is home equity calculated?
Your home's current market value minus the balance you still owe. Lenders generally allow access to a portion of it, commonly up to 80% of the value including your existing mortgage.
What's the difference between a HELOC and a refinance?
A refinance replaces your mortgage with a new, larger one at a set payment. A HELOC is a revolving line secured against your home, usually at a variable rate, that you draw on as needed.
Do I need an appraisal?
Usually yes — lenders need a current value to determine how much equity is available.
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