Home Equity Calculator
Calculate your current home equity, LTV ratio and how much you could borrow.
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Frequently Asked Questions
How is home equity calculated?
Home equity = Current Market Value − Remaining Mortgage Balance. If your home is worth $450,000 and you owe $280,000, your equity is $170,000. Equity increases as you pay down the mortgage and as the home appreciates in value. It decreases if the home value drops or you take out additional loans against it.
How can I access my home equity?
Three main ways: (1) Cash-out refinance — refinance for more than you owe and pocket the difference; (2) Home Equity Loan — fixed lump sum at a fixed rate, repaid separately from your mortgage; (3) HELOC — revolving credit line at a variable rate. Each has different costs, risks and best-use cases.
What is the minimum equity required to avoid PMI?
Conventional lenders require 20% equity (80% LTV) to eliminate Private Mortgage Insurance (PMI), which costs $50-$200/month. You can request PMI removal once you reach 20% equity based on original value. Lenders must automatically cancel it at 22% equity. Refinancing or getting a new appraisal can accelerate PMI removal.