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How to Calculate Home Equity.
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How to Calculate Home Equity.

Rosemary Njeri

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.

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.

 Calculate Home Equity.

Therefore, your home equity is $ 200,000.

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